On Friday, there was strong jobs report and the dollar looked very good but Monday turned out to be an entirely different story, the dollar dropped again.
I'm not surprised because it's not that easy to have a currency as powerful and widely used as the dollar come dropping so low and make it back. This ain't just about money and numbers, it's human trust that has gone down and trust once broken is extremely difficult to rebuild.
Primarily, U.S and China traders are looking at whether the two countries can patch things up before the make a decision in favor of the dollar.
I'm also eagerly looking forward to which position Donald Trump would take, whether he would want things to cool down or come trying to dominate or let me say win.
China's exports to the U.S. plunged 34.5% in May and just so you know, this is the worst since early 2020. It proved just how much the tariffs trade war was biting America. Because of that and other factors, the euro and pound both gained against the dollar. Markets right now are betting the Fed might cut rates by October since we see the trade tensions weigh on the economy too much.
The trade talk if it goes well will have to end in new policies being set to make sure both parties have a fair advantage to make progress. If China so much as notice a disadvantage, they're powerful enough to say no to America and America kinda is too. This thing can get very messy real quick and I'm just hoping it doesn't lead to more tensions that could in turn lead to a war. Trust me, a real war between America and China will immediately become world war 3 and nobody wants that. These are nations with nuclear weapons.
Posted Using INLEO
