In a report by Reuters News, it has been noted that the US government expects China to honour its commitments to buy more US goods. Markets were waiting for some news on this with respect to the coronavirus and the presumption that China would not be able to commit to the agreements under a trade deal signed by the world’s two largest economies in January. The news comes via a senior US Treasury official speaking on Thursday. The official said it was still too soon to make accurate forecasts for the impact of the virus on the global economy, but the base case scenario foresees a V-shaped impact that would see China’s growth drop in the first quarter and then rebound. Asked if the outbreak would require changes to the Phase-one trade deal with China, the official said, “At this stage, we’re not expecting changes to the implementation of Phase 1 … We still expect them to meet their commitment, but it’s over a period of time.” Under the deal, which took effect this month, China has pledged to increase US goods purchases by $77 billion in 2020 and by $123 billion by 2021, compared to a baseline of US imports from 2017, the year before the US–China tariff war began, – Reuters News. FX implications This news, coupled with the People’s Bank of China, responding to the coronavirus by reducing the country’s benchmark loan prime rate (LPR) to lower borrowing costs and ease financial strains on companies hit by the virus epidemic, should be supportive to risk-FX, weighing on the yen, the US dollar but supportive to the AUD. In US benchmarks, we are seeing some stability again following the negative start to the day. However, this is a complex matter and the prevailing uncertainty will not enable a sustained risk-on beat in financial and commodity markets. China is renowned for talking a great talk…encouraging an optimistic outlook for its economy, but the matter of fact could be something far less positive which would ultimately support the US dollar. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Litecoin Price Analysis: Is this the end of an Elliott Wave formation? FX Street 2 years In a report by Reuters News, it has been noted that the US government expects China to honour its commitments to buy more US goods. Markets were waiting for some news on this with respect to the coronavirus and the presumption that China would not be able to commit to the agreements under a trade deal signed by the world's two largest economies in January. The news comes via a senior US Treasury official speaking on Thursday. The official said it was still too soon to make accurate forecasts for the impact of the virus on the global economy, but the base case scenario foresees… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.