Representatives from the United States and China convened in London on Monday to discuss a potential trade deal, drawing significant global attention. The conversations spilled over into a second day on Tuesday. Their aim was to address the damaging and ongoing trade war between the two nations.
During the course of negotiations, the EUR/USD currency pair showed resilience, keeping above the 1.1400 level during the day’s trading session. Even with this stability the currency pair was not able to spark a great deal of investor interest which led to erratic trading conditions. EUR/USD traded just above 1.1400 on Monday morning. This downside movement was emblematic of the still jittery and cautious sentiment of traders.
At the same time, the AUD/USD currency pair managed to stay relatively strong, trading above the 0.6500 level throughout the talks. In this case, investors are awaiting the Australian confidence prints with bated breath. This intelligence would greatly enrich trading flows for the Australian dollar in the immediate future.
In another unrelated but equally dramatic market development, Tesla Inc. (TSLA) just saw its stock price drop off a cliff. It didn’t help that earlier this week, TSLA had a 17% sell-off. By late Wednesday afternoon, it was trading under $274, a stunning decline from its levels over $332 earlier in the week. The volatility in Tesla’s stock underscores the broader market uncertainties as traders react to various economic indicators and corporate performance.
Recent trade negotiations between the U.S. and China have kept participants on the edge of their seats. These negotiations are masking other important moves in the market. All eyes will be on negotiations as they continue. They would like to see how these negotiations will impact currency valuations and investor sentiment in the next few days.