US Secretary of State Mike Pompeo joins some of the top advisers in the Trump administration to consider using the Hong Kong dollar’s peg with the US currency. The move aims to punish China for recent moves to chip away at the former British colony’s political freedoms, per the Bloomberg. Key quotes The idea of striking against the Hong Kong dollar peg — perhaps by limiting the ability of Hong Kong banks to buy U.S. dollars — has been raised as part of broader discussions among advisers to Secretary of State Michael Pompeo and hasn’t been elevated to the senior levels of the White House, suggesting that it hasn’t gained serious traction yet, according to people who discussed the matter on condition of anonymity. The proposal faces strong push back from others in the administration who worry such a move would only hurt Hong Kong banks and the U.S., not China, they said. Another person cautioned that the idea of attacking the dollar peg is lower on the list of possible options now under discussion. Those ideas include canceling a U.S.-Hong Kong extradition treaty and ending cooperation with Hong Kong’s police, the person said. Hong Kong has pegged its currency to the U.S. dollar since 1983, allowing it to fluctuate within a fairly strict band that has generally centered around 7.8 per U.S. dollar. The very idea that undermining the peg has even been raised offers some insight into the range of discussions now underway for punishing China. The idea has primarily been discussed at the State Department, where Pompeo has emerged as the administration’s loudest critic of Beijing’s recent decision to impose a new national security law on Hong Kong. Market reaction In addition to weighing on the market sentiment, the news also adversely affects the USD/HKD pair. As a result, the S&P 500 Futures recede the day-start consolidation of Tuesday’s losses whereas USD/HKD seesaws around 7.75. 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 GBP/JPY Price Analysis: Struggles to confirm inverse Head-And-Shoulders on 4-hour chart FX Street 3 years US Secretary of State Mike Pompeo joins some of the top advisers in the Trump administration to consider using the Hong Kong dollar’s peg with the US currency. The move aims to punish China for recent moves to chip away at the former British colony’s political freedoms, per the Bloomberg. Key quotes The idea of striking against the Hong Kong dollar peg -- perhaps by limiting the ability of Hong Kong banks to buy U.S. dollars -- has been raised as part of broader discussions among advisers to Secretary of State Michael Pompeo and hasn’t been elevated to the senior levels… 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.