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Week ahead: Global economic turbulence as Trump sets the tone

2025/5/9

As the financial markets brace for another week of uncertainty, President Donald Trump has once again stirred debate with a series of bold moves. His renewed criticism of Federal Reserve Chair Jerome Powell – calling him “Mr. Too Late” and a “fool” – has put monetary policy back in the spotlight, while his direct call for Americans to buy stocks raises questions about market sentiment.

Beyond the economy, Trump’s push to raise taxes on individuals earning over $2.5 million to 39.6% marks a notable shift in fiscal policy discussions. Meanwhile, his call for a 30-day unconditional ceasefire between Russia and Ukraine introduces a new dimension to geopolitical conversations. As the week unfolds, investors, policymakers, and global leaders alike will be watching closely to see how these developments play out.

KEY ECONOMIC INDICATORS

Trade & Tariffs: Trade deal between the U.S. and the U.K.

  • The U.S. keeps a 10% base tariff on U.K. goods, expands market access, removes tariffs on U.K. steel/aluminum, applies 0% tariffs on U.S. agricultural exports and introduces tiered tariffs on U.K. car imports.
  • The U.S. Trade Representative may enforce actions on imported services.
  • Trump announced a $10 billion Boeing aircraft deal with the U.K.
  • The U.S. Commerce Secretary aims to strike a trade deal with a major Asian country.
  • The E.U. may impose extra tariffs on $95 billion worth of U.S. goods if talks fail.

U.K. Interest Rate: The Bank of England cut rates by 25 basis points, but the decision was divided.

Energy: U.S. and Russia are reportedly exploring ways to resume natural gas supplies to Europe.

U.S.-Ukraine Agreement: The Ukrainian parliament approved a mineral resources deal with the U.S., seeking more weapon supplies.

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MARKET MOVERS

XAU/USD

xauusd-gold
  • Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible.
  • While the bulls maintain control, fading upside momentum suggests a potential reversal.
  • A corrective move lower is anticipated.
  • A short-term bounce may occur before the next leg down.
  • Preference to sell into strength.

Trade Opportunity: Target 1: 3,210 / Target 2: 3,200