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Silence before the storm? Markets are waiting for the G20 summit

Silence before the storm? Markets are waiting for the G20 summit

created Natalia BojkoJune 28 2019

Active (especially this week) traders probably noticed that nothing is happening on most currencies. There is a lack of significant price movements, and the volatility diminished. Players with substantial funds in the wallet probably do not want to make any more ambitious moves. The eyes of large institutions and investors with a significant impact on the market are directed at the G20 summit in Osaka, Japan. The most awaited meeting is a conversation between the Chinese and US presidents. In the media, we can find a wide spectrum of scenarios that can be met. More and more new information about the negotiations arouses a greater sense of confusion and confusion about further moves in the markets. What is waiting for us in the near future and will the markets surprise us with the Monday opening?

A painless agreement impossible

The last tensions deepened the mood of the two parties that the agreement on the line Beijing - Washington it will run fast, efficiently and painlessly. The road to the final agreement is promising to be long and bumpy. Despite the "Politeness" Both sides, the US is relentless, and China after the experience of Japan with the United States (a trade war a few years ago) has done a lesson. From recent reports The Wall Street Journal it is known that President Xi Jinping has a set of tasks that must be met by President Donald Trump to talk about any further negotiations.

The American market is alarming

Customs and the trade war alone is not on hand for both countries. Data from the US economy are becoming more and more alarming. With the naked eye, we can observe an economic slowdown in the world. American corporations and major financial institutions are alarming. Falling margins and increasing production costs that can not be passed on to consumers can deepen this slowdown.

Development instead of a compromise

The Chinese president, in an interview for local newspapers, stressed that there was a limit to the development of his country by the US after the trade war. The United States in his opinion want to be a permanent leader in the world. He believes that the only way to win a trade war is to develop, not compromise. Xi Jinping's statement shows that through opening "Door to the world" such development will have the raison d'être even with the omission (as the main recipient of their services) of the USA.

For now, most of the currencies that have, as part of the dollar, as well as NASDAQ, do not seem to care much about the upcoming meeting. Will we also notice good moods and increase in turnover on Monday?

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About the Author
Natalia Bojko
Graduate of the Faculty of Economics and Finance, University of Białystok. He has been actively trading on the currency and stock markets since 2016. It assumes that the simplest analyzes bring the best results. Supporter of swing trading. When selecting companies for the portfolio, he is guided by the idea of ​​investing in value. Since 2019, he has held the title of financial analyst. Currently, he is the co-CEO & Founder in the Czech proptrading company SpiceProp. Co-creator of the Podlasie Stock Exchange Academy project (XNUMXrd and XNUMXth edition).