The increasingly bitter trade war between the United States and China has stalled. Both countries are near a ceasefire agreement, and the news has had a dramatic effect on international markets. Investors were pleased by the news, sparking a rebound in market momentum. The cease-fire has been a great relief to traders. It further emphasizes some fundamental investing principles that always ring true, despite the changing economic landscape.
Since the announcement of this truce, markets globally have surged as investors cheered the strong recovery. The message behind this groundbreaking agreement underscores the need for respect and dignity to be the foundation of our trade relationships. Both countries agreed to continue to cooperate closely. This sent a positive signal to investors to begin investment again where markets had been clouded by uncertainty from continued tension.
You could see this positive sentiment in the British pound too, especially versus the US dollar. GBP/USD currency pair inched up close to 1.3300 level. After a series of notable losses, GBP/USD indicated signs of recovery, trading around the 1.3280 mark during Thursday morning’s Asian trading session. This rise comes just in time with the release of the UK’s Q1 GDP data expected within days.
The fallout of the relationship drama between the US and China remind us of several fundamental investing realities. These hard truths are a call for much more strategic thinking in our response to new geopolitical developments.
“US-China trade truce only emphasizes timeless investing truths.” – www.fxstreet.com
Traders are anxious ahead of the new GDP figures to be released on Friday. The recent appreciation in GBP/USD indicates that confidence in the UK’s economic resilience amid global headwinds is returning.