empty
15.04.2025 09:46 AM
Trump Will Either Win or Lose. Is There No Middle Ground? (Potential Renewed Decline in #SPX and Bitcoin)

On Monday, markets calmed slightly amid Donald Trump's apparent backpedaling on the trade barriers he had imposed on America's trading partners. It gives the impression that the U.S. president is starting to retreat. But is that the case?

Clearly, the U.S. orchestrated the chaos surrounding the tariffs, primarily targeting China but also aimed at Europe and India. The latter two have traditionally shown weakness and remain highly dependent on Washington. Market speculators warmly welcomed Trump's decision to grant a 90-day delay, and the subsequent pause in implementing high tariffs on computers, components, and consumer electronics helped fuel gains in tech giants' shares, which lifted other sectors and global financial markets overall.

But is Trump truly backing down, with his trade war slowly fading away or becoming a more localized conflict focused on Beijing?

In a previous article, I mentioned the distinctive psychological profile of the 47th president of the United States, which plays a huge role in America's decision-making. Whether we like it or not, that's a fact. It's already clear that Trump is maneuvering. In simpler terms, he will continue to pursue his goals — by fair means or foul. He will manipulate, make promises, break them, and so on. This is all part of American political tradition and typical of its presidents. Therefore, we should expect continued pressure on China and other trade partners as Trump seeks to impose his interests through strong-arm tactics. That means periods of easing will alternate with increased pressure. The question is whether this tactic will be effective and how it will affect market dynamics.

It seems investors are aware of the uncertain prospects of Trump's trade war, so it's unlikely we'll see lasting optimism. Most likely, any local stock market rallies will remain under the shadow of trade war uncertainty. The start of earnings season should soon offer some clarity. Yes, the trade war began in March, which isn't enough time to fully assess its impact — but if significant negative consequences begin to emerge, stocks may struggle to advance.

A similar picture will likely unfold in the commodities market. Cryptocurrencies will also remain under pressure, as they are susceptible to trade war rumors and developments. As for the U.S. dollar, after last week's decline, it has begun to consolidate below the key psychological level of 100.00.

I have serious doubts about Trump's alleged retreat. I believe that the chaos in the markets will persist. It is unclear how long this will continue. However, we can confidently say that this situation will persist until the U.S. president either reaches agreements with key trade partners or his approach to "Making America Great Again" collapses under the weight of domestic problems and mounting resistance.

This image is no longer relevant

This image is no longer relevant

Daily Forecast:

#SPX

The CFD on the S&P 500 futures is hovering around 5397.70. If it fails to rebound from this level and resume its upward movement, we may see a local reversal and decline toward 5148.55 amid deteriorating market sentiment. The sell trigger could be a drop below 5369.56.

Bitcoin

The token is trading below the 86088.50 mark. Deteriorating market sentiment may lead to a price reversal and a decline toward 82120.85. The sell trigger could be a breakdown below 85095.00.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump Once Again Fails to Persuade Powell

Donald Trump and Jerome Powell held a meeting at the White House last week. This news went largely unnoticed due to the scant details provided. Only general information about

Chin Zhao 00:38 2025-06-05 UTC+2

EUR/USD. June ECB Meeting: Preview

On Thursday, the European Central Bank will announce the results of its next meeting. Although the formal outcomes of the June meeting are virtually predetermined, the future prospects for further

Irina Manzenko 00:38 2025-06-05 UTC+2

The Dollar Returns to the Battlefield

When there is no unity among allies, things don't go smoothly. Following mutual accusations between the U.S. and China, Donald Trump commented that Xi Jinping is a very tough

Marek Petkovich 00:38 2025-06-05 UTC+2

Is This the Right Time for Christine Lagarde to Leave Her Post?

While the euro shows no intention of yielding to the U.S. dollar, Christine Lagarde is about to face criticism over her intention to continue leading the European Central Bank

Jakub Novak 13:35 2025-06-04 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair remains in a sideways consolidation near its lowest levels since October 2024. Market participants are awaiting the Bank of Canada's interest rate decision, which will be announced

Irina Yanina 09:57 2025-06-04 UTC+2

The Stock Market Believes Trump's Tariff Game Won't Have a Major Impact (Growth in #NDX and #SPX CFDs May Continue)

After a sharp, almost catastrophic drop in March and April, the major U.S. stock indices recovered in May, fully offsetting the decline. Confidence is growing among market participants that this

Pati Gani 09:53 2025-06-04 UTC+2

The Market Is Playing a Dangerous Game

Is the market only hearing what it wants to hear? Or is it simply playing the "buy the dip" game? According to Nomura, buying the S&P 500 five days after

Marek Petkovich 09:27 2025-06-04 UTC+2

What to Pay Attention to on June 4? A Breakdown of Fundamental Events for Beginners

There are not many macroeconomic reports scheduled for Wednesday. Of course, we should note the services sector business activity indices for Germany, the UK, the EU, and the US. However

Paolo Greco 07:27 2025-06-04 UTC+2

GBP/USD Overview – June 4: Trump Is Only Interested in the Big Fish

The GBP/USD currency pair traded lower on Tuesday, but the decline was weak, just like the volatility. Just look at the most recent stretch of the GBP/USD movement

Paolo Greco 03:41 2025-06-04 UTC+2

EUR/USD Overview – June 4: Words, Words... Where Are the Actions?

The EUR/USD currency pair traded relatively calmly throughout Tuesday, and the U.S. dollar even managed to gain slightly. However, we wouldn't pay much attention to a dollar rise

Paolo Greco 03:41 2025-06-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.