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Early on Wednesday, Reuters came out with the news, relying on its sources, that said the Trump administration is planning to meet later this month to discuss efforts to further limit exports to China and its flagship telecoms company Huawei.

Key quotes

The gathering, currently scheduled for Feb. 28, will bring together policymakers to hammer out differences after the U.S. Commerce Department withdrew a rule aimed at further reducing foreign shipments to Huawei Technologies amid pushback from the Pentagon, one of the people said.

The meeting, which is expected to include high-level officials from the Commerce, Defense, State and Energy Departments, is aimed at resolving disagreements over how best to approach the blacklisted Chinese company and the broader war with China over technological dominance.

The Commerce Department in May placed Huawei on a trade blacklist, citing national security concerns. 

FX implications

While news like this could negatively affect the market’s trade sentiment, traders seem to pay less attention to the news as the USD/JPY, Gold and Asian stocks are mostly portraying cautious optimism.