Trump-Xi Jinping meeting and trade speed: what awaits global markets

Trump-Xi Jinping meeting and trade speed: what awaits global markets

According data, interest in the topic "Trump Xi trade meeting" has increased by 62% over the past two weeks.

The political scene becomes a trading indicator

On October 31, US President Donald Trump and Chinese President Xi Jinping are expected to meet in South Korea for the APEC summit. The world is preparing for an event that could impact exchange rates and global capital flows. Preliminary talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier Heng Lifeng have already set the tone, with the parties discussing a possible update to the trade agreement and technological barriers.

Trump-Xi Jinping meeting and trade speed: what awaits global markets

Trade uncertainty and impact on currencies

The US is considering restrictions on Chinese software, which could spark a new round of trade tensions. This means increased volatility in currency markets, as investors are reacting to any signs of shifts in technology supplies, as the IT sector accounts for a significant share of China's exports.

Brokers are seeing surges in activity in the USD/CNH and USD/JPY pairs, which traditionally serve as a barometer of market expectations.

Currency liquidity at record levels

According to the Bank for International Settlements, global currency trading volumes reached $9.6 trillion per day —an all-time high. This growth is directly linked to Trump's tariff policy, which encourages companies to hedge their currency risks.

Experts believe that such volumes not only reflect global activity, but also demonstrate an acceleration of "trading speed"—the market's ability to instantly respond to political and economic news.

Why a meeting can change the market

If the parties agree to lower trade barriers, the dollar could temporarily strengthen due to capital inflows into the US stock market. However, any hint of increased sanctions rhetoric would immediately trigger safe-haven currencies such as gold, the Swiss franc, and the yen.

Inside sources in Washington report that the US may tie the continuation of the deal to China's commitment to comply with the 2020 agreement. Failure to do so could lead to a return to tariff escalation—a scenario that already caused a 2% drop in the S&P 500.

Geoeconomic effect for Asia

The location of the meeting, South Korea, is symbolic: it is a strategic intermediary between the US and China. Seoul is interested in reducing tensions, as its economy is directly dependent on the supply chains of both countries. The summit is expected to boost activity in Asian markets and in pairs involving the South Korean won.
Expert quote:

"Trading speed is the new metric of the global economy. The faster markets react to policy, the higher the risk, but also the potential for profit," notes Marina Dow, economist and strategist at FXAnalytics.

Markets are waiting for momentum

The meeting between Trump and Xi Jinping is more than just a diplomatic event. It's a moment of truth for global trade, currency flows, and hedging strategies. Any statement, gesture, or leak could instantly change the direction of the dollar index and gold.

Brokers and traders are bracing for a volatile week as the market enters a state of maximum news sensitivity.
By Claire Whitmore
October 27, 2025

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