President Biden recently left Cornwall, concluding the first stop on his debut international trip as President of the United States of America. Serving the US Government for almost 50 years, he is a veteran of US politics and appears to emanate the qualities of a world leader; a stark contrast to his predecessor. The return to a normality appears to be a breath of fresh air for his counterparts across the democratic nations of the World.
The G7 at a Glance
With the short and powerful message “America is back”, Biden wasted no time and immediately began talks with leaders from varies countries, including the UK’s Prime Minister, Boris Johnson, the Canadian PM, Justin Trudeau, France’s PM, Emmanuel Macron, and the newly appointed Japanese PM, Yoshihide Suga. The mood among the world leaders at the G7 appeared cautiously optimistic as they agreed to work together to tackle the biggest challenges currently facing the global community, such as COVID-19, climate change and the growing threat from autocracies such as Russia and China.
Let’s have a look at some of the key takeaways from the G7 Summit:
- An agreed-upon global minimum tax and democratic ideals
- G7 leaders reaffirm commitment to the Paris Agreement, pledging to collectively reach net zero by 2050 and half emissions by 2030
- The promise of over 1 billion vaccines for developing countries
- The G7 will end the funding of new coal generation in developing countries and offer up to £2bn in aid to stop using the fuel
- A unified stance against autocratic nations and their violations of human rights
What does the future hold?
Now what does this mean moving forward? It can be described in one word: stability. World leaders no longer have to worry about the erratic behaviour of the former President of the United States and can therefore rely on a functional and mutually beneficial relationship with one of the biggest economies on the planet. Markets are renowned for favouring a stable global economy and the renewed relationship between the USA and EU paves a clear road for a strong democratic stronghold against rising threats.
The relationship between the USA and the EU will likely have a significant impact on the forex markets. The US dollar and the Euro are the two most-traded currencies in the world and new relations between the two countries will most likely strengthen each currency. Traders often analyse political events and how they impact the forex markets and support that with tools such as the mt4 trading platform to ensure their trades are as profitable as possible.
We aren’t out of the woods yet, Biden still has a several stops on his trip, including a stop in Brussels and a highly anticipated meeting with Vladimir Putin in Geneva, the outcome is yet to be seen. However, It’s clear that after a difficult 12 months, things are starting to look a lot more positive and that the challenges we face as democratic nations, will be faced together.