Markets not enthusiastic about Trump’s remarks

We are seeing some risk-off flows in the markets at the moment. Two key Trump’s remarks could be what’s weighing on the sentiment. The first one is his answer to the question whether he would consider it a victory if the US still had high tariffs by the end of the year like 20% or 30% or 50%. He replied “total victory”. Not exactly encouraging.

The second one is when he said that he won’t call President Xi unless Xi calls him first. It’s been made clear by now that the Chinese won’t call first, so if this is the strategy, then they could remain at a standstill for a long time until the economic damage becomes big enough to force Trump to fold.

This article was written by Giuseppe Dellamotta at www.forexlive.com.