Investors are bracing for another pivotal week as geopolitical maneuvering and central bank policy loom large over global markets. Attention now shifts to President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskiy in Washington, coming on the heels of a closely watched Trump – Putin summit that ended without new sanctions on Russia or restrictions on crude buyers. While the absence of escalation provided a modest lift to risk sentiment, traders remain wary of the next developments in Ukraine and their potential market implications.
European leaders are anxiously awaiting the outcome of Trump’s talks with Kyiv, mindful of the possibility that the White House could push Ukraine into difficult concessions in exchange for a fragile ceasefire. Zelenskiy, meanwhile, has doubled down on his stance that Russia must end the war outright, underscoring the wide gulf that remains in negotiations. For markets, the question is less about immediate breakthroughs and more about whether the current geopolitical landscape supports the gradual grind higher in risk appetite seen in recent weeks.
At the same time, US monetary policy returns to the spotlight. Federal Reserve Chair Jerome Powell’s address at Jackson Hole on Friday is expected to be the defining moment for Treasuries and the dollar in the weeks ahead. Markets have largely priced in a quarter-point rate cut in September, with investors also looking for signals of additional easing before year-end. Powell’s guidance will therefore be crucial in setting the tone for global assets, particularly as recent US data has kept alive the debate over how aggressive the Fed should be.
Trading Takeaway: With geopolitical risks simmering and monetary policy clarity pending, traders face a week where headlines could quickly dictate positioning. A conciliatory outcome from the Trump–Zelenskiy meeting may support European equities and risk assets, while a hawkish tilt from Powell could underpin the dollar and cap Treasury gains. Conversely, signs of deeper Fed easing may fuel demand for gold and high-beta currencies.
Disclaimer: This report is for informational purposes only. It does not constitute investment advice or represent the official views of any central bank or regulatory body.