UAE Retail Traders React Faster to Trump's Announcements than Fed Decisions

The trading landscape in the UAE has undergone a significant shift, with Donald Trump's political announcements becoming a major driver of retail trading activity. According to Capital.com, the platform's Middle East leadership notes that traders across Dubai and Abu Dhabi react almost instantly to Trump's statements, leading to price swings and a surge in trading volume.

The data from Capital.com shows that the trading volume increases tied to Trump's announcements have outpaced reactions to Federal Reserve decisions and major U.S. economic data releases. This trend has been particularly pronounced in the first quarter of 2025, with record trading volumes recorded across the MENA region.

Coinciding with this shift, Capital.com has expanded its crypto services in the UAE, with its affiliate Capital Vault obtaining a license to offer spot virtual asset dealing and custody services. This development is seen as significant, as it allows traders to buy and hold real crypto through the Capital.com app, with Capital Vault handling execution, custody, and settlement.

Meanwhile, Oman and Iran have proposed establishing a temporary shipping route along with a plan for mine clearance in the Strait of Hormuz, aiming to improve regional stability and reduce navigational risks. Prediction markets are pricing in an increased probability of a formal agreement by August 31, with odds standing at 34.5%.