Cryptocurrency and macro analysis firm QCP Capital, in its assessment published on its official channel, stated that market volatility has decreased for multiple reasons and the countdown has begun for the resumption of the trade war. According to QCP, on the macroeconomic front, the FED kept interest rates steady in line with expectations. However, the policy committee maintained its hawkish stance, stating that short-term inflation expectations remain high. The statement stated that customs duties stand out as a significant upward risk. Authorities reiterated that they will continue with a “wait-and-see” strategy until the course of inflation becomes clearer. On the other hand, markets no longer react as sensitively to geopolitical developments, especially the Israel-Iran tensions, as they used to. Related News: Big Bull Anthony Scaramucci Drops a Bold Prediction: “I Think It Will Surpass Ethereum” However, QCP states that the risk of a trade war is starting to come back to the agenda. The expiration of the European Union’s tariff suspension period against the US on July 9 stands out as a significant turning point in this regard. The US has only been able to reach an agreement with one of its more than 195 potential trading partners. While negotiations have reached a deadlock, the market’s lack of reaction to the leaked news and gradual tariff steps is striking. QCP Capital listed the upcoming critical dates as follows: July 14: EU expected to begin imposing retaliatory tariffs on US August 12: China-US 90-day tariff truce ends August 31: Long-term tariff exemptions for Chinese imports expire These dates could trigger periodic pullbacks in risk assets. Still, QCP says its baseline scenario is optimistic: Given the overlapping interests between China and the US, negotiations are more likely to reach a stable conclusion, which could support a rally in risk assets. Finally, it is stated that the hedging trend in the markets continues and short-term correction expectations are maintained. *This is not investment advice. Continue Reading: Analysis Company Says ‘Countdown to the Return of Trade Wars Has Begun,’ Reveals Critical Dates
