Global financial markets face new geopolitical equations between global economies that may lead to the formation of new independent blocs, drawing a different roadmap for major currencies with the USD expected to remain the strongest.
7 June, ADS Securities – A new geopolitical map could produce three major independent poles; the US, China and the European position will be based on Brexit and perhaps a new Russian-European alliance in the making, thus a positive impact in the cards for the Euro.
Financial Markets Face New Geopolitical Equations
Under this new reality, America’s first priority will be to reduce the US trade deficit with China, with talks of $200 billion reduction from China’s side but the picture will be clearer after the forthcoming Korea-US summit, taking place on June 12, 2018. China will protect its interests and explore new markets whilst on the other hand, French president Macron will continue to work for a unified strong Europe, independent in its decisions and serving its economic interests away from the US.
Positive developments will be reflected in the Eurozone if Macron manages to make a new alliance with Russia as inflation levels reached close to its target in addition to positive inflation data in Germany which surprised the markets reaching its highest in six months.
ADS Securities Risk Disclaimer
This article was provided by ADS Securities analysts.
Trading foreign exchange, foreign exchange options, foreign exchange forwards, contracts for difference, bullion and other over-the-counter products carries a high level of risk. Hence, it may not be suitable for all investors.
All opinions, news, analysis, prices or other information contained in this communication are provided as general market commentary. It does not constitute investment advice. Nor a solicitation or recommendation for you to buy or sell any over-the-counter product or another financial instrument.