It’s going to be kind of a synthetic Sunday today as we don’t have anything notable on the agenda other than a couple of low tier releases. Anyways, the focus remains on tariff related news and the underlying expectations are for more de-escalation ahead and eventually deals (even with China).
This has been the trend since Trump paused the reciprocal tariffs as it marked the peak in trade war escalation. We will probably keep on pricing in more de-escalation until we get the first deal, or at least details of one.
That will likely be the next key catalyst for the markets. The markets’ expectations will be based on that first deal. If the details are bad, we should go back to pricing in more pain for the economy. Conversely, good details should get us to new all-time highs.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
