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There are now reports that China’s Liu will  stay in Washington through Friday for meetings after all. A White House spokeswoman was reported by CNBC’s Kayla Tausche saying that the  SCMP  report on China trade talks was  inaccurate.  

However, Fox Business has said that sources told them that the trade team will leave after one day of talks on Thursday.    

More:

  • Top-level talks will  proceed on Thursday as planned – CNBC
  • Asked whether to expect a truce of a breakthrough this week, a senior administration official says, “President Trump doesn’t know what China going to offer in trade talks – CNBC

This all follows the original Breaking News story that the US and China had made no progress on key trade issues in two days of deputy-level talks, sources say., reported by the  South China Morning Post within the last hours of recent trade.  

The report stated that the Chinese delegation refused  to talk about forced technology transfers, a core US grievance in the negotiations, a person with knowledge of the meetings says. Moreover, those high-level talks are expected to last for only one day, with Liu He and his team now planning to leave Washington on Thursday.

FX implications:  

Good news has less effect than bad news considering how fickle the situation has become.  Markets are cautious not to buy into optimism at this juncture and the recovery in risk has been minimal on this supposed mix-up. USD/JPY has recovered off its lows, 107.03, but remains down -0.14% at the time of writing at 107.32, down from a session high of 107.50.