Threatens a 20% tariff on all cars

The EURUSD has cracked below the 200 hour MA (green line) at 1.16418 on the threat from Pres. Trump of a 20% tariff on all cars into the US.

The pairs is back in a swing area int he 1.1616-26 area. A move below that will look toward the 100 hour MA at 1.15924.

European car maker stocks are heading lower in recent days on trade concerns.

A tariff on the European imports would be painful to companies that export to the US. Although BMW stock is lower, they do manufacturing some of their cars already in the US. Daimler Benz does as well. Yesterday they cut its 2018 earnings forecast, blaming global trade tensions. They said that the tariffs on SUVs exported from their US plant to China would lower earnings. Now, they will get hurt on exports from Germany to the US too.

Trump on tariffs to Europe....I really don't care. Do you? Build them here.

PS the trade deficit with Germany is about 22B (4 months). The deficit in 2017 was about -64B with the US exporting 54B and Germany exporting 117.5B.