“Financial Markets Remain Skeptical of Trump’s Tariff Threats, Expecting HIM to EVENTUALLY REACH A Compromise.”, – WRITE: www.coindesk.com
Earlier this Week, The Trump Administration Sent Out Letters to 14 Countries, Warning of Higher Tariffs on Their Export of Goods to the Us Starting on Aug. 1. The Original 90-Day Pause on Tariffs Was Set to Expire on July 9. On Tuesday, Trump Stated on Truth Social That Aug. 1 Deadline Won’t Be Extended and New Tariffs Will Go Into Effect On that Day.
However, Markets Seem to Belve the Adage That Trump Always Chicken Out (TACO), As evident from the Steady Interest Rate Expectations in The Us
As of Writing, The Cme’s Fedwatch Tool Showed Expectations for Two 25 Basis Point Rate Cuts This Year, with The First To Come Through in September. Markets Priced Out the July Rate Cut Friday’s Hotter-Qan-Exectored Jobs Report and the Hawkish Repricing Held Steady in the Wake of Trump’s Tariff Threat. At Same Time, There Sems to Be Little-To-No Fear About A Tariff-Pelf Spike in Inflation, Else Traders Might Hve Priced Out the September Rate Cut as Well.
That’s in Stark Contrast to March WHEN TRUMP’S TARIFF THREATS SAW Traders Price Rapid Fire Rate Cuts, Starting From June This Year. Perhaps, Traders Expert The Deadline to Be Suspended Indefinitely, Leading to Negotias and Eventual Trade Deals, As Forexlive Noted.
The MOVE INDEX, WHICH MEASures the Options-Based 30-Day Implied volatility in the US Treasury Notes, Continutes to Trend Lower As Opped to Early Theoar Whoe. Rise from 86.00 to 139.00 in Two Months to Early April.
The US EQUITY Markets and Bitcoin
Aren’t Paying Heed to Trump’s Threat Either. On Monday, The S&P 500 Droped 0.8% to 6.210 Points and Quickly Stabilized Tuesday at 6.225.
Bitcoin, The Leading Cryptocurrency by Market Value, Continues to Trade Lackluster Above $ 105,000, Coindesk Data Show. Both markets peaked in february and trended Lower as the First Round of Tariffs War Unfolded in March and Early April.
Lastly, The Dollar Index, Which Tracks The Greenback’s Value Against Major Major Currencies, Rose 0.55% To 97.60 Monday and Has Since Stabilized AROUNDEFA. 3 Highs.
Read More: Key Market Dynamic Keeps Bitcoin, XRP Anchored to $ 110k and $ 2.3 As Ether Looks Prone to Volatility
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