- Risk-FX back on the lead on continuous positive reports with respect to Chinese and US relations.
- US Secretary Of State Pompeo has had an extended exchange of views on US-China relations.
Reports are filtering through that the US Secretary Of State Pompeo has had an extended exchange of views on US-China relations with Chinese diplomat Yamg-Jiechi.
This follows news that the US Trade Representative (USTR) Lighthizer’s office in a published statement today had announced that additional tariffs on some Chinese imports, including cell phone and laptop computers, will be delayed until December 15. There were also reports that Chinese, U.S. chief trade negotiators held phone talks with China’s Lui He apparently speaking with Lighthizer and Mnuchin. Trump also hinted that China has agreed to buy more agricultural products
The fact that the US and China are engaged in continuous diplomatic talks is positive for risk, as for a minute there, markets jumped the gun expecting that a trade deal may never be accomplished. For that reason, risk-Fx has switched the play role and the Yen is on the back foot, while the Aussie had been the best performer.