China response is SUPER interesting - the timing indicates SIGNIFICANT escalation potential!

• What?                             Huge escalation in China stance on trade deal
• Why?                              The timing of the announcement is far from random – hours before Fed Chairman Powell goes to the podium in Jackson Hole & minutes before the official opening of the G-7 meeting in France
• Impact:                                                       

 

1. The market 'believed' worse was over and that Powell today would deliver promises of lower price of money. Creates odds of downside risk & off a higher Gold and Crypto
2. Global GDP just feel another 0,25% over next six months
3. September 1 – the proposed increase in tariffs from US takes action – if so  - Expect China to cancel planned trip to the US
4. China clearly have the upper hand with President Trump – how fear stock market reaction
5. Fed is now more likely than not to take action

 

• Action: Buy XAUUSD w. stop @ 1480.00

 

 

https://twitter.com/Steen_Jakobsen/status/1164872557172015108

 

 

 

Also as I have pointed out on Saxo Twitter today:

 

@Steen_Jakobsen @SaxoStrats

 

 

 

https://twitter.com/Steen_Jakobsen/status/1164806231845769217

 

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Investment Officer

 

Saxo Bank A/S  |  Philip Heymans Allé 15  |  DK-2900 Hellerup
Phone: +45 39 77 40 00  |  Direct: +45 39 77 62 23  |  Mobile: +45 51 54 50 00

 

https://www.home.saxo/insights/news-and-research/authors/steen-jakobsen

 

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