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In a phone call with Merkel, Chinese President Xi Jinping said that China stands ready to work with Germany and the EU to strengthen strategic cooperation, uphold multilateralism, tackle global challenges, and jointly add certainty to the current world of uncertainty, Xinhua published today.

Market implications

There is a growing sentiment that China has all of this under control, despite the US administration’s best efforts to curb the nation’s progress o the international stage. There is an undertone of USD weakness on the long term outlook considering its vulnerability to being replaced as the world’s reserve currency. Trade wars have taken a back seat again which is also weighing on the greenback.