Search ForexCrunch

According to Greg Gibbs, Analyst at Amplifying Global FX Capital, the market appeared to pay relatively little attention to the news suggesting that the US and China may be looking to restart negotiations on trade to limit the planned implementation of tariffs.  

Key Quotes

“Perhaps it is highly sceptical that either the US or China is willing to back-down on the key issues related to China’s policy objective of boosting its high tech industries, and the US objective of preventing technology transfers to China.”

“However, the reports suggest that there is a possibility of a cooling in trade tensions. For instance, there is a risk that the US decides to delay the implementation of its first round of tariffs slated for 6 July to enable last-minute negotiations to proceed.”

“This could see a partial rebound in Asia EM assets and risk appetite more broadly. However, since the news reports, US equities and EM equity ETFs remained near their lows for the US session”

“Any cooling in trade tensions, for example, might lead to a rebound in the AUD, that has matched the fall in Asia EM assets in recent weeks.”