President Donald Trump continues to double down on trade relations with our neighbor to the north. On the one hand, he exhibits an eagerness to play hardball with China. The current state of international trade is volatile. Trump has more than 15 trade deals. Trump has at least 15 comprehensive trade deals actively under consideration. With the ball now very much in China’s court, the possibility for further agreements hangs in the balance.
Trump’s moveable feast on tariffs has been one of the more striking features of his trade policy. He’s often reversed course multiple times on tariff-related topics, leaving a wake of confusion and fear across markets. His on-again, off-again volatility has rolled into Bitcoin and altcoins, as changes in his trade posture have been causing massive spikes in investor sentiment. The current US-China tariff standoff is wreaking havoc on supply chains around the world. This growing hatred is spreading anger and resentment, fueling violent extremism, and canceling harmony and coexistence for many years to come.
The newly intensified risk sentiment looks to be being driven by a generally more positive investor mood. As of midday Tuesday, gold proved resilient, hovering around $3,200 per troy ounce. The gold rebound is a sign of positive overall risk sentiment. Yet, persistent fears over the international economic crisis have capped vigorous XAU/USD ascendancy.
The international trading community is nervously awaiting further developments here. There’s much anticipation for the release of inflation figures in the UK on Wednesday. Fundamentally, the GBP/USD currency cross is under modest selling pressure, primarily due to a strong return of the Greenback. Consequently, GBP/USD is pulling back toward the key 1.3200 support zone.