Trump stopped pushing Kim for denuclearization
Investors on a financial roller coaster
Donald Trump the President of the United States of America recently shifted his strict position about the denuclearization of North Korea.
The immediate denuclearization is no longer on Washington's agenda and many are wondering if the President Donald Trump will keep his noticeably softened tone next week in Singapore, and if he is going be able to achieve the promise “complete, verifiable, and irreversible denuclearization' in a short period of time".
More than a week after the cancelation of the June 12 summit on Friday the President of the United States of America told reporters that he is confirming his return to the table for the deal on denuclearization in stages via multiple meetings.
President Trump said "We're not going to go in and sign something on June 12 ... We're going to start a process,"
This dramatic change of President Trump, who was previously very strict and asked north Korea to surrender its weapons now is giving a tone of fear once again in the market by changıng hıs polıtıc and on a global geopolıtıcal scale once again he has shaken the waters of stability, but at the same time he has created a hope for a historical Agreement betting the two leaders.
Another pullback from Trump was the fact that he stopped usıng the term “maxımum pressure” whıch ındıcates that he no longer applies dıplomatıc sanctions and mılıtary threats to North Korea.
"We're getting along, so it's not a question of maximum pressure," Trump said on first of June.
Tom Collina, director of policy at Ploughshares Fund which is a public foundation against nuclear weapons said that Trump is now recognizing the reality of the situation.
"Trump is still pushing for denuclearization, as he should, but he now has more realistic expectations for how long it will take," and add "as long as the North is not conducting nuclear and missile tests, there is no rush."
Trump new diplomatic approach seems to be more in line with Kim’s preferences which rely on more long term process of disarmament.
This approach may drive the process to more concessions like sanctions relief and security guarantees.
One probable danger of the long term process may be the diplomatic and the global uncertainty that may drive the financial sector to panic meaning that the investors may withdraw their investment and look for more save heaven assets.
Gold Technical View
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The price for now based on Ichimocu seems to be bearish but to be able to find any potential signals price must bounced on kijun sen.
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Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all kinds of traders, from beginners to experts. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars, here.
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