Have you seen the way Trump simply blew up the economy of the world today?

Have you seen the way Trump simply blew up the economy of the world today?

What happened to the markets?

19.06.2018

Those who follow markets movements can see that today is not the best day for trading. Mainly because there isn’t a lot of stability going on in the markets today. As usual fall of the markets is a usual reaction to the statement made by Trump administration. Lately they have been the resource for all of the troubles markets have been having. This time they managed to awake fears on full-blown trading war once more. Mr. Trump, it seems like we’ve had enough. Although it seems that Trump himself hasn’t had enough.

More Chinese goods will fall victims to the new tariffs policy that the US are threatening to the whole world with. And this time fears are so big that markets decided to drop instantly instead of waiting for the official statement or at least the list of the wares that are under threat. Billions and billions of dollar are going to be lost if this madness doesn’t stop. Trading process of the whole world is now very dangerous as the hit can come from any corner. Oil is already dropping price, although the greenback seems to be very still. Having climbed towards the 11-months-high point it seems that nothing will be able to ahke greenback from the high point. But we wouldn’t be so sure. If Chinese are answering then the real problems are going to start for the US.

The problem is that American are under full impression that American-Chinese trade is one-sided and that America doesn’t sell anything to China. But in reality every trade agreement is double-sided. And if Chinese will answer (and they will) than the USA and dollar will suffer together. More tariffs is practically a spit towards previous partnership. Right now no one can thrust USA with promises about partner relationship. Traders are also put into a difficult position with markets falling so hard.

It is safe to say that we will have to deal with financial fallout of Trump’s decision for weeks to come.

General trading picture (long-read)

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As we can see trading hasn’t been easy lately. Ana every day those in power make it even more and more complicated. It seems that not a day goes by that there is another rock thrown under those who enjoy trading. As we speak oil is falling down together with Asian and European segments of the market. Euro is not doing so great either because of the upcoming EU summit where the strongest country in the region – Germany - can take a hit with Angela Meckel’s post being under threat. Brexit takes its toll on pound and gold is very unstable.

You see now that virtually no asset is safe enough but traders around the world have been feeling huger for some risk lately. What you want you get, is that the logic behind the current situation? Right now it seems that the risks are unnecessary high. And there is no way for us to influence the situation. If the selloff is provoked by the panic in the markets, everything will sink even lower than it has already now. On the other hand holding onto certain assets can also be very dangerous as there is no hope in sight. The only reasonable thing right now is to turn to the assets that have not been touched yet by the crisis.

One of these assets are digital coins. This market has been in the spotlight for so long that we simply got tired of the talks about it. All XRP, LTC and BTC didn’t go anywhere. They just stopped being so popular. But trading in digital currencies right now may be the best solution to the problem. Of course for those for are trading regular assets it is not easy to turn to the new ways but logic tells us that that is a reasonable move for at least the nearest week. And if the demand rises at this market we will see the growth of the price for the major players.

We all have to wait for OPEC decision that will come on Friday. Oil output will run a lot of points in the market together with dollar basket index, gold prices and a lot more. So there is that. Dollar has been oh 11-months-high since Friday and held on to the position through the weekend. That is very strong performance. It will be that much harder to see it fall from the pedestal after China issues an official answer to the new US tariffs.

So. As we can see digital currencies and coins may really be the only answer to the trading riddle this week. Look and you will probably see growth for some time. Although is the situation stabilizes and the demand falls again we will also be able to see the fall of the digital coins market.