Tensions on the equity markets are growing with Trump and Italian government rocking world's economy by destabilizing national currencies. 

Tensions on the equity markets are growing with Trump and Italian government rocking world's economy by destabilizing national currencies. 

Donald Trump is set on wall-building.

1. Dollar

 

President Donald Trump seems to have his mind set on the wall on the US border with Mexico. Illegal immigrants seem to bother Mr. President far more than crooked healthcare system or bad tax return policy which were imposed in the American citizens by himself. At the recent rally which took place in Tennessee Trump declared that he ill make Mexicans to pay for the wall to stop illegal immigrant from coming to America. And the crowd was pleased with the announcement. But was dollar?

Trump seems to ruin the relationship of the US with all the partners which America gained during the Obama presidency. He violates every guideline and shakes American economy loose. Of course, he only wants the best and his intentions are good – to bring back jobs to the Americans. But the main point is that shutting out main trading partners is not the right was to do so. Yes, lately dollar was performing very good, hitting new and new checkpoints on the way up, but that was due to the hopeful mood of the investors, hoping for reconciliation between North Korea, America and the rest of the world. With the Un-Trump meeting being shaky it is recommended to be very careful with dollar trades as the movements of the greenback are quite unexpected lately.

Chinese-American tariffs. Impact?

1. Dollar

 

It is no secret that Chinese and American economies are the biggest in the world. And is they will not find a way to resolve the issue quickly economic balance of the world is going to be under tremendous threat. But seems that Trump doesn’t really care about it as it was announced that $50 billion tariff will be imposed on Chinese borders. That is a hard hit after the tension seems to have gone away. Technical shares have faced selloffs several times amidst this tariff war and there is a big chance for the biggest one yet to come.

Pressure for the dollar and renminbi (Chinese currency) are escalating as does the situation. America aims to shorten $337 billion deficit between the States and China but they might come closer to the goal by blowing up the economy of the world. As we can see, dollar trades and investing into Chinese shares is very risky at the moment.

Euro destiny hangs by thread.

1. Euro

 

There is no way that euro is going to perform good for the next couple of days. It seems that the main problem for the currency is now waiting for the final decision of Italian government on the out-of-time elections which may come this summer. Is the cards are not played right the election may very well become Italian version of Brexit, where people will be forced to vote for the Italy as the part of Eurozone and EU. And if the people of Italy go down the pass of Great Britain, it may become the last straw on EU economy in general and German economy in particular.

Although today euro seems stable it may crush tomorrow if today’s effort of the Italian government go fruitless. What will it mean for the rest of the world? Well, the crash has already taken a toll on US Treasuries and Asian markets, so it is very possible that in the nearest future the impact will be even stronger.

At the time of the article being written euro jumped 0.6 percent compared with yesterday and is traded at $1.16 point.