Trump’s Peace and Trade Push in Asia: How Rare Earth Deals Could Shake Up the USD/THB and USD/JPY Pairs
A Surprise Move in Asia: Trade, Peace, and Prosperity
Former U.S. President Donald Trump made headlines again after announcing that he signed major trade and rare earth agreements, alongside brokering a peace treaty between Thailand and Cambodia. Following the announcement, Trump wrote:
“Just leaving Malaysia, a great and very vibrant country. Signed major Trade and Rare Earth Deals, and yesterday, most importantly, signed the Peace Treaty between Thailand and Cambodia. NO WAR! Millions of lives saved. Such an honor to have gotten this done. Now, off to Japan!!!”
The statement immediately drew attention—not just from political observers, but from forex traders and economic analysts tracking the ripple effects across Asia’s financial markets.
Why Rare Earth Deals Matter for Global Markets
Rare earth elements (REEs) are essential materials used in electronics, batteries, and defense technology—industries that power the modern world. Countries like China currently dominate global rare earth supply, so new deals involving the U.S. and Southeast Asia could reshape global trade flows.
Here’s what this means in Forex Trading terms:
Boost to regional economies: Thailand, Cambodia, and Malaysia could benefit from new U.S. investments and export partnerships.
Potential USD strength: U.S. involvement in rare earth trade often bolsters the U.S. Dollar (USD), as it enhances America’s supply chain security and economic influence.
Currency pairs to watch: Traders will likely monitor USD/THB (U.S. Dollar / Thai Baht), USD/JPY (U.S. Dollar / Japanese Yen), and USD/MYR (U.S. Dollar / Malaysian Ringgit) for market reactions.
The Peace Treaty: Stabilizing the Region
Perhaps even more impactful than the trade deals is the peace treaty between Thailand and Cambodia—a development that could bring lasting stability to the region.
Regional conflicts or tensions often create risk aversion in the markets, where investors move away from emerging market currencies and into safer assets like the U.S. Dollar (USD) or Japanese Yen (JPY).
However, peace agreements tend to do the opposite—they encourage investment, reduce volatility, and strengthen local currencies over time.
For forex traders, peace in Southeast Asia may signal:
Stronger Thai Baht (THB) and Cambodian Riel (KHR) as investor confidence returns.
Reduced demand for “safe-haven” assets like the JPY in the short term.
Improved trade stability across ASEAN, benefiting countries like Malaysia and Singapore.
At GME Academy (Global Markets Eruditio), we often emphasize how political and geopolitical events can drastically influence currency pairs. This peace treaty is a prime example—where diplomacy meets economics.
How These Developments Affect Forex Trading
Let’s break it down for Forex Trading for Beginners:
Peace creates stability.
Stable regions attract foreign investment, increasing demand for local currencies like the Thai Baht (THB) or Malaysian Ringgit (MYR).Trade deals drive capital flows.
When countries sign major trade agreements, money moves to fund new projects and industries—impacting the value of both exporting and importing countries’ currencies.Rare earth partnerships influence the long game.
Since rare earths are strategic resources, these deals could affect global manufacturing, technology production, and even defense spending—all of which feed into long-term currency strength.
For example:
If the U.S. secures stable rare earth supply chains through Southeast Asia, it could strengthen the USD over time.
If Thailand and Cambodia see new investment flows, their currencies could appreciate modestly against the dollar in the medium term.
Why This Matters to Everyday Filipinos
Even if you’re not trading directly, this development could impact ASEAN economies, including the Philippines.
Regional peace means stronger trade and tourism ties—potentially increasing job opportunities.
Rare earth investments could lead to regional manufacturing growth, influencing export competitiveness.
For OFWs and small business owners dealing in foreign currencies, shifts in the USD/THB or USD/JPY could affect remittance values and import costs.
Understanding these international developments helps ordinary citizens make smarter financial choices, from currency exchange timing to investment planning.
Looking Ahead: Japan Next on the Itinerary
Trump’s next stop—Japan—could further shape forex market sentiment. Any discussions about trade cooperation or technology partnerships might affect the USD/JPY pair, which remains one of the most traded and closely watched in global markets.
Traders should monitor:
Official statements from Japan’s trade ministry.
Market reactions to rare earth deal details.
Shifts in Asian market indices, which often precede forex movement.
From Peace Treaties to Market Opportunities
Trump’s recent diplomacy spree blends politics, economics, and opportunity—all key elements that move the forex market. For traders, the signing of trade deals and peace treaties in Southeast Asia isn’t just headline news—it’s a signal of shifting dynamics that could redefine regional currencies for years to come.
If you want to learn how to interpret news like this and trade confidently in the forex market, join our FREE Forex Workshop at GME Academy today.
Discover how world events—from peace treaties to trade deals—translate into real forex opportunities.
