Adding fuel to the bearish fire, as support for U.S. tech earnings moves to the rear view mirror, now comes the uncomfortable truth: the stagflation boogeyman,
GBP/USD rose on Tuesday, climbing four-tenths of one percent on the day and testing the 1.3400 handle on headlines of a possible US-UK trade deal that would see the UK avoid the brunt of trade tariffs being actively pursued by the Trump admin.
Gold rallied to a two-week peak on Tuesday as the Chinese markets resumed operations following a long weekend holiday and concerns about US trade policies.
The AUD/USD pair remains resilient, despite a retreat from recent highs. The Australian Dollar benefits from a weaker US Dollar, as market participants focus on the Fed’s anticipated policy meeting on Wednesday.
At the start of the week, Goldman analysts and others told clients that Tesla's market share in China has remained stable, and the world's second-largest economy has recently overtaken the U.S. as Tesla's largest market.
It was a boring day, with the market falling to start and basically trading sideways. Tomorrow, of course, will be the FOMC meeting, and I do not expect anything material to come from it.
