The tariff debats are still hitting the markets harshly. A couple of days ago, Trump decided to impose a 50% tariff on EU goods exported from the Eurozone. This was an unexpected move by the U.S., considering the smooth agreement reached with China, even though it was the riskiest and problematic deal among the list of countries.
Trump started hinting at June 9th as the deadline for the EU to come up with a sustainable tariff agreement with the U.S. to avoid the risk of 50% tariffs on goods. The way Trump approaches to the other countries and unions clearly show that he does not want to play a soft game as he is aware of the power he holds by managing the markets and the strongest economy of the world.
The leaders are going thorough a tough time to make a decision on the trade balance they have with the U.S. As far as what we have seen by Trumps attitude towards the idea of "equal tariff rates", he wants to cover the loses the U.S economy experienced. Thus, the equal rates do not sound logical for him to agree on.
Delayed EU Tarifs have two meanings for the investors:
1- The companies in the EU will not be taking new actions until the mutual agreement is signed between two parties.
2- The markets will be following this narrative as the number one factor that can drive the prices up or down in the major markets. Fundamentally, the DXY is likely to be affacted positively or negatively according to the EUR/USD actions.
What I expect to see is that the markets will be under the control of the robots that keep the prices between the support and the resistance lines in a certain channel. The sideway movements may continue by the fourth week of June or even the first week of July.
As July 1 is the time the Q3 begins, seeing some volatility does not surprise any veteran investors. To be able to stay sane, I am not planning to take the altcoins' charts seriously. While they are hardly above their all time low levels, though Bitcoin is breaking all time highs, there is no need to get more stressed out.
I'll keep managing the portfolio as of June (or the time EU and US agrees on tarrifs). The uptrend is strong on ongoing. I do not see any reasons to experience any trend violations in the near future.
What do you think about the effects of the delayed tariffs on the EU?
Share your thoughts below 👇
Hive On ✌️
Posted Using INLEO
