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Today at 3:45 p.m. EDT, Secretary Mike Pompeo, China hawk, will deliver remarks to the media. 

His remarks will come at a very sensitive time between the US ad China, so markets will be tuned in listening for hawkishness with regards to the US relations with China.

Pompeo’s comments today will come within days after Mr Trump said he was banning Chinese software, TikTok, in the US.

The company has denied accusations that it is controlled by or shares data with the Chinese government.

Speaking to Fox News Channel, Pompeo said the action would be taken “with respect to a broad array of national security risks that are presented by software connected to the Chinese Communist Party”.

Microsoft to continue talks to buy TikTok, for which Pompeo has referred to when suggesting that there are “countless” companies doing business in the US that might be passing information on to the Chinese government. Data could include facial recognition patterns, addresses, phone numbers and contacts, he said.

“President Trump has said ‘enough’ and we’re going to fix it,” he told Fox News in a recent interview.

China and Iran relations

Pompeo has also recently warned that china would destabilize the Middle East by deepening ties with US foe Iran, suggesting China and Iran were close to finalizing a 25-year trade and military agreement known as a “comprehensive strategic partnership.” 

“China’s entry into Iran will destabilize the Middle East. It’ll put Israel at risk. It’ll put the Kingdom of Saudi Arabia and the Emirates at risk as well,” Pompeo told Fox News this weekend.

“Iran remains the world’s largest state sponsor of terror, and to have access to weapons systems and commerce and money flowing from the Chinese Communist Party only compounds that risk for that region,” Pompeo added. 

Market implications

Risk-off could favour the yen while there is no love for the greenback at this time:

  • USD/JPY Price Analysis: Bulls step into the bear’s layer