USA has begun to send its tariff cards (or publish them on social networks). However, the market does not seem interested in this at all at this time. The S&P 500 has remained unchanged since the beginning of the week, the yields of the US government bonds are stable between 4.3% and 4.4%, and the US dollar index has gained ground in the four days of this week until now, says Volkmar Bour, Commerzbank’s currency analyst.
Markets can expect a weaker USD
“On the one hand, Salami could be due to the tactics. Unlike April 2, when the US announced all the new tariff rates for all countries at the same time, they are taking a conspicuous amount of time this week. Since Monday, 23 countries have received notification of their new tariff rates, with many more pending or that they will probably not receive a letter after all. Tariffs are very similar to those announced on April 2.
“On the other hand, it could also be the expectation of another taco, which is calming the markets. ‘Trump always groped’ has become a common phrase among traders and describes the fact that Trump has generally removed the high tariff rates that initially announced before or at least shortly after they entered into force.”
“This makes a difference for the market. If this is the case, there could be considerable volatility on August 1, if Trump does not go back this time and the tariff Taco, the Salami argument would suggest a gradual devaluation as soon as the fundamentals deteriorate. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
