The world came to know Donald Trump as a strong but stubborn leader. He rarely changes his mind and if he is set on some idea he is likely to push it to extreme measures. We see that now with his idea to build a wall on the border with Mexico and with brutal separation of immigrant children with their parents. But it seems that there are some people who can influence the president in some way because official news says that there can be a softening in American policies towards trade with China.

Oh, how wonderful that would be. To once again live in the world where there is no trading tension. Just imagine – America and China both occupy the spots, which were made for them specifically, each producing and offering their own products to the consumers around the world. But, doesn’t that sound exactly like that is. We mean, of course, there are lot of spheres of the manufacturing process that overlap between the two countries, but each of them is making products in different price category and of different quality. So technically everyone should be happy. But Trump is still not pleased.

If tensions, go down this second a lot of pressure would be lifted from various segments of the market. We see the way Asian region is reacting to the updates – falling lower and lower every day, taking a lot of other assets with them. Growth of the oil prices might also be accounted by the low dollar, as it may be the most stable of the assets in the markets right now. Moreover, it is gaining a lot of points throughout the greenback uncertainty. Euro and pound are also on the shaky grounds, so a lot of things depend on the decision that has to be made by Trump.

In the nearest future we are to hear to final decision on the new tariff package and it will either be devastating or curing for the economy of the world. If tariffs are imposed, which is the worst-case scenario, China will not make us wait for the answer for too long. In this case all of the pressure which is now held back by the suspense will pour out on the greenback. Can you imagine the consequence? Of course, assets like oil and gold are going to skyrocket and dollar will face a sell-off which is going to weaken the economy of the US and other dollar-bonded countries.

But we sure hope that Trump will come to his senc3es and realize that the damage that was done by the previous package of sanctions is enough for the end of millennia. It is bad enough that America lost almost all of the trading partners, but loss of the investors will be fatal for the US economy.

With the clear uncertainty in the world, a lot of traders are faced with the question of which asset to trade. And today the answer is oil. Until we have a clear situation on the trade relationship between China and America we have to be very careful on the assets that we choose to trade with. That especially goes for the currency couples and gold, for example. Although dollar is falling only by a little bit every day, the losses may turn out pretty big by the end of the week. But there is one big winner at today’s market – oil.

Both WTI and Brent are big winners today with WTI breaching $70 per barrel point. It is interesting as the previous time the trade tensions between China and USA were this high oil reached a 3-years-high point. Will this happen again? We say that it is pretty possible. And even higher. In case dollar loses the trust of the investors and traders all of the people will have to look for another asset to pour their trust in. And oil may just be the gulf for us all.

Of course, there is also gold, but we have a feeling that the future of traders lies in oil. Just in the beginning of the year the world was shaken up by the success of Tesla and we thought that oil age is soon to behind us. But right now, the situation has changed a lot. Looking at the current situation the black gold might be the savior of the markets. In a nutshell – dollar is too influenced by the policies of the White House. Oil depends on much more factors that the greenback. And pressure seems to be doing more good for the crude than harm it. So even though all of our doubts, oil may be the winner of the situation.