Tensions between America and Europe peaked at the end of last week, culminating in president Trump imposing a straight 50% tariff on all EU goods. By all accounts, negotiations between the two blocs had proceeded poorly up until that point, with Trump accusing the EU of being “very difficult to deal with” and that the discussions “were going nowhere”. European and US indices reacted badly to the announcement, dropping sharply last Friday while the Dollar continued to lose out against the majors. The move also prompted fresh inflows into gold, ever the safe haven in troubled times, raising the precious metal to $3,358 an ounce. It did not take long to bring the EU back into the fold. By Sunday night, the Trump administration had agreed to postpone the deadline to the 9th of July, giving more time for a deal to be reached. US futures have shot up following the announced delay.
The selloff in the Dollar continued this morning, lifting the Euro up to $1.14 while the Pound Sterling pushed towards $1.36 – a three year high. The shift to risk-off conditions late last week cut short the momentum in crypto, causing a minor fall for Bitcoin from highs of $112k down to $108k over the weekend. Some measure of bullishness has returned to cryptocurrencies this morning but it is too early to say whether or not we will be seeing new highs again this week.
The economic calendar is particularly dry this week – it is the end of the month after all. Markets have the FOMC minutes to look forward to on Wednesday, although given how consistent the Fed has been in recent months, the latest meeting will likely provide nothing of substance. The big event of the week will be the PCE price index, set to be released on Friday. So far inflation in the US has not been the catastrophic blight that economists have been warning about, in fact figures have consistently fallen below expectations. The latest publication will reveal whether or not the trend continues.
Эрсдлийн дохио : Худалдааны дериватив ба хөшүүрэг бүтээгдэхүүн нь өндөр түвшний эрсдэлтэй байдаг.
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