That seems to be the name of the game at the moment, even as Trump continues to threaten tariffs against China. Risk trades are keeping the calm and it’s going to be a crucial week ahead to see if and when Trump will relent again, as he has done in the past. Yesterday, he said that:”We are going to have a fair deal. I want to be good to China. I love my relationship with President Xi. We thought that (South Korea) would be a good place to meet, and we are going to be meeting. I will be in Malaysia, I will be in Japan.”Trump also confirmed his attendance to Malaysia later this weekend in what many expect there to be high-level talks between US and China officials as well, on the sidelines of the ASEAN Summit. The big one will come at the end of the month, with Trump and Xi set to meet on the sidelines of the APEC Summit in South Korea.TACO time?
This article was written by Justin Low at investinglive.com.
đź’ˇ DMK Insight
{ “insight”: “The ongoing tariff threats from Trump are more than just political posturing; they’re a key driver of market sentiment that traders need to watch closely. Risk-on trades are currently buoyed by optimism, but the reality is that any sudden escalation in trade tensions could flip the script, leading to increased volatility across equities and forex pairs. Traders should keep an eye on the S&P 500 and USD/CNY as barometers for market sentiment; a break below 4,300 on the S&P could signal a shift towards risk aversion, while a move above 7.00 in USD/CNY might indicate a flight to safety. nnBut here’s the kicker: the market’s reaction to these tariffs often lags behind the headlines. Historical patterns show that significant moves in the forex market can take 1-2 weeks to materialize after major announcements. So, while the immediate impact might seem muted, the ripple effects on commodities and emerging markets could be substantial. Watch for changes in volume and open interest in related assets, as these can provide clues about institutional positioning. nnIn the coming days, keep an eye on economic indicators like the PMI and employment data, as these will shape the narrative around trade negotiations and market stability. The real story is how traders react to these developments, so stay alert for signs of a shift in sentiment.”, “takeaway”: “Monitor the S&P 500 and USD/CNY closely; a break below 4,300 or above 7.00 could signal a significant shift in market sentiment and trading
đź“® Takeaway
“: “Monitor the S&P 500 and USD/CNY closely; a break below 4,300 or above 7.00 could signal a significant shift in market sentiment and trading






