After recent speculation about the North American trade agreement USMCA (United StatesâMexicoâCanada Agreement), some signs of stability have finally emerged.
Mexican President Claudia Sheinbaum has stated that she does not see a possibility of the United States withdrawing from the USMCA under the current circumstances.
This commentary has somewhat eased concerns about the ongoing 'trade shock' in the market.
đ Why is this important?
USMCA is the foundation of North America's supply chain, production, and exports.
If there were a sudden withdrawal, the potential impacts could be:
âĸ đĻ Supply chain disruptions
âĸ đ Increase in tariffs
âĸ đ˛ Inflationary pressures
âĸ đ Volatility in equity and risk assets
The crypto market is not isolated from macro risks. Major trading uncertainty generally increases volatility in risk assets.
đ Market reaction
The market is currently in a cautious position.
Any political change regarding trade policy will immediately:
âĸ Dollar index (DXY)
âĸ Equity market
âĸ Commodities
âĸ And indirectly crypto
Could affect everything.
đ Analysts' perspective
Analysts believe that the indication of maintaining the agreement reflects a pragmatic economic position.
Avoiding large-scale trade conflicts is more beneficial for the US and Mexican economies.
đ Key points for the Binance audience
â Macro policy = Market volatility
â Trade stability = Risk sentiment support
â Political news = Short-term reaction, long-term structure is different
Risk management and macro monitoring are now more important than ever.
Note: This is not investment advice. Market conditions can change rapidly.
#Macro #USMCA #GlobalMarketSentiment #CryptoSentiment
