The foreign exchange market was fairly stable on Monday, with the GBP/USD pair bobbing along between 1.3530 and 1.3550. Traders are understandably on edge, watching what happens in the ever-developing saga of US-China trade negotiations. These discussions carry on to London on Tuesday and are helping foster stable markets. Despite the uncertainty stemming from these conversations, market volatility has largely stayed muted, with investors taking a wait-and-see response.
During the day, GBP/USD has continued to trade around its intraday highs, putting up a fight in the second half of the day. Such performance is representative of the overall market as traders await the results of negotiations that are sure to move currencies depending on their likely results. The pair’s stability suggests a measured response to the current economic climate, even as headlines loom about the important talks.
Just recently, Shiba Inu made headlines in the crypto world after breaking on-chain wallet records. This unprecedented wave of activity is an unmistakable sign that investor interest has positively rebounded. The popular meme coin looks like it’s been continuing to recover from a key support level at around $0.00001188. As of Monday, Shiba Inu was trading at just under $0.00001253. This value represents an admirable jump of almost 6% after recovering from its support floor. This resurgence further underscores the coin’s volatility as well as the increasing engagement by traders eager to capitalize on price movements.
Gold too had a sharp comeback after starting the week on a bearish note. In fact, it now trades well above $3,330 comfortably during the American session on Monday. Investors are skittish amid a nasty trade war, causing the asset to stretch its increase past this threshold. The uncertainty surrounding the outcomes of US-China trade discussions has prompted many investors to stay on the sidelines, limiting market volatility for gold and other assets.
With the second round of US-China trade negotiations getting underway, markets are closely watching any news that could move markets and change the mood. Traders are always nervous when congressional talks like these get rolling, particularly when the fate of global economic stability hinges on the negotiations. The risk-off sentiment seen in other asset classes highlights the fragility of markets created by the connectedness of financial markets, macro events and now geopolitical tensions.
Within the equity market, it has not been easy. Tesla (TSLA) sold off below $274, capping a brutal 17%-plus sell off. This drop mirrors overall market trends and investor confidence in the electric vehicle maker as it navigates the post-pandemic economic malaise and other ongoing challenges.