Blame Trump For Anything Bad Happens Next

Blame Trump For Anything Bad Happens Next
Aug 10, 6:15 pm
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Since the beginning of the week, North Korea and the US are threatening each other, every other hour, and as always, the global markets and the investors are the biggest victims.

Two words were enough to shake the global equities, including the US, Europe, and Asia. In addition, those two words were also enough to push safe haven assets sharply higher.

If I am not wrong, this is the first time ever we hear a US president saying “ We Will Respond With Fire and Fury.” That was a direct threat.

In Return, North Korea responded by saying “Trump is Load of Nonsense.” At the same time, North Korea says it will fire at Guam in August.

All of these factors are likely to be the main driver of the markets in the coming days, weeks and months.
Safe Assets Saying It All

Last week, safe haven assets tumbled on the back of the US Jobs Report, which came in better than expected, fueling the estimates for a possible rate hike in September. Gold lost 1% while Silver tumbled by 3%.

Things had changed since Monday, when Trump said these two words, Gold added more than 2%, while Silver added more than 5% until this report is released. Gold just surpassed 1280, while Silver is trading near 17.20.

At the same time, safe haven currencies have been rising gradually, including the Yen and the Swiss Franc, with no indication of a turnaround anytime soon.

Such rally is showing that there are real concerns among investors, as there is a clear shift from Equities to safe haven assets, which means that investors are anticipating an escalation any moment.

Read more: https://www.orbex.com/blog/2017/08/blame-trump-for-anything-bad-happens-next/

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