empty
16.05.2025 10:49 AM
Investors Continue Digesting the Impact of the Tariff Truce Between the U.S. and China (There Is a Chance of Renewed Corrective Decline in Gold and Oil Prices)

Markets have fully priced in the outcome of the U.S.–China talks, which resulted in a 90-day trade truce. Weaker-than-expected U.S. economic data offset the early-week optimism.

The recent rally lost momentum amid the release of economic reports throughout the week, which pointed to some softening in inflation and disappointing retail sales figures. These developments heightened concerns over slowing consumer activity. As a result, market participants began considering the likelihood of an earlier start to Federal Reserve rate cuts this year. We are effectively seeing the onset of a new phase of uncertainty: on one hand, the Fed, via Chair Jerome Powell, has signaled no rush to resume rate cuts; on the other, inflation continues to decline gradually, reaching an annual rate of 2.3%. Note that the Fed's target inflation rate is 2%.

What to Expect Amid the End of the Rally and Unclear Prospects for the Fed's Next Moves and Trade Negotiations

It is clear that the U.S. currently lacks the real economic capacity to rebuild its entire domestic industrial base rapidly. Current efforts are based on luring companies from Europe and other countries back to the U.S., and on blatant pressure tactics toward its trade partners. This suggests that Donald Trump will continue to apply geopolitical leverage, which will further deepen uncertainty and increase the risk of triggering a global crisis.

Under these conditions, we should expect the absence of sustainable trends, high volatility, and a general sense of nervousness in the markets.

What Can Be Expected on the Market Today?

I believe the U.S. dollar may continue its gradual decline amid speculation that the Trump administration favors a weaker dollar to remain competitive globally. This perspective is understandable, as American companies encounter significant challenges in international markets due to high domestic labor costs. In this environment, with inflation potentially falling towards 2%, the dollar is likely to remain under pressure. Meanwhile, equity markets may continue their upward trend, driven by expectations of an earlier resumption of Fed rate cuts.

This image is no longer relevant

This image is no longer relevant

Daily Forecast:

Gold

Gold remains under pressure amid reduced U.S.–China trade tensions. The start of peace talks between Russia and Ukraine also weighs on the yellow metal. The price has fallen below the support level 3210.00, which may pave the way for further decline toward 3152.90. The 61.75 mark may serve as a sell level.

WTI Crude Oil (#CL)

WTI crude is trading below the 62.00 level. OPEC+'s stance on increasing output and the weakening demand for crude oil exerts downward pressure on prices. The price may rebound to 62.00, from which I believe it should be sold with a target of 59.80. The 3201.48 level may serve as a sell entry point.

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

Bank of England to Keep Rates Unchanged

Today, the Bank of England is expected to keep interest rates at 4.25% and signal that it is maintaining its approach of one cut every other meeting, as policymakers

Jakub Novak 11:02 2025-06-19 UTC+2

The Fed Maintains Its Previous Position

The U.S. dollar responded with growth, while risk assets such as the euro and pound declined. Following yesterday's meeting, Federal Reserve officials stated they expect two interest rate cuts

Jakub Novak 10:58 2025-06-19 UTC+2

The Iran-Israel War Has Yet to Exert Significant Negative Influence on Markets (Limited downside risk for gold and upward momentum for #USDX remains possible)

As expected, the U.S. central bank left all key monetary policy parameters unchanged, once again citing ongoing uncertainty about the future state of the national economy—a factor that has become

Pati Gani 09:14 2025-06-19 UTC+2

The Market Keeps Its Options Open

While the White House and the Federal Reserve are in wait-and-see mode, the market has also decided to hold steady. Donald Trump has yet to make a final decision

Marek Petkovich 09:08 2025-06-19 UTC+2

What to Pay Attention to on June 19? A Breakdown of Fundamental Events for Beginners

No macroeconomic reports are scheduled for Thursday. The only points of attention today will be Christine Lagarde's speeches and the results of the Bank of England meeting, which will

Paolo Greco 06:45 2025-06-19 UTC+2

GBP/USD Overview – June 19: UK Inflation and the Bank of England Meeting

The GBP/USD currency pair traded relatively calmly on Wednesday, though the day before, it had posted a substantial decline in the second half of the session—more than 100 pips

Paolo Greco 04:02 2025-06-19 UTC+2

EUR/USD Overview – June 19: Trump Continues to Work Wonders

The EUR/USD currency pair traded more calmly on Wednesday than the previous day. However, the previous day's significant movement also began only closer to the evening. It was not related

Paolo Greco 04:02 2025-06-19 UTC+2

GBP/USD. Inflation, the Bank of England, and Geopolitics

GBP/USD traders did not react to the UK inflation growth report that was published on Wednesday, just before the June Bank of England meeting. The focus of the market remains

Irina Manzenko 00:42 2025-06-19 UTC+2

The Canadian Dollar Still Looks Like a Favorite

Markets remain cautious as several high-impact events loom that could significantly alter the risk balance—namely, the FOMC meeting on Wednesday evening and a potential U.S. intervention in the war between

Kuvat Raharjo 00:42 2025-06-19 UTC+2

The Dollar Is Caught in a Vicious Cycle

The U.S. dollar has become an outcast—not just globally, but even at home. The White House supports everything from stock indices to Bitcoin and even gold through policy uncertainty

Marek Petkovich 00:42 2025-06-19 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.