Risk stays buoyed as traders eye Trump’s trade deal announcement

But as per the latest report here, it seems that the so-called deal is just an agreement for negotiations to begin. It will just involve a framework for discussions over the coming weeks/months. So, we’ll see about that. But as always, one can expect Trump to talk up a big game and that is keeping markets hopeful ahead of the announcement.

Risk trades are holding up once again with S&P 500 futures now up 0.8%. That follows from the overnight gains but it was far from straightforward. The Fed stood their ground and that briefly saw US stocks pare gains before this late headline helped to salvage things. A word of caution of course that the devil is in the details regarding that report on chips but markets are running with it anyway for now.

Going back to Trump’s announcement, it will be interesting to see how he wants to sell the narrative. The details will also be of much importance, so be on the lookout for that.

For now, it’s still a case of buying the rumour. Will it end up being a sell the fact play before the end of today?

Trump’s announcement is expected at 1400 GMT later.

This article was written by Justin Low at www.forexlive.com.