Trade talks may suffer if Trump signs Hong-Kong bill, EUR/USD, GBP/USD retreat
|The South China Morning Post (SCMP) is reporting that a high-profile signing ceremony of the Hong-Kong bill may anger China. The report by the highly-read publication says that Beijing is closely watching the events. Congress approved the Hong-Kong Human Rights and Democracy Act on Wednesday, and the bill is awaiting President Donald Trump's signature to turn it into law.
Previous reports suggested that the president may do so on Thursday. Trump previously said that China wants to make a deal but he has not decided yet. Markets were more optimistic earlier when the same Chinese publication suggested that the US may refrain from imposing duties on December 15, even if the world's largest economies fail to reach a deal.
EUR/USD is dropping below 1.1070 after nearly reaching 1.11 earlier in the day. GBP/USD has dipped under 1.2920, paring earlier gains. The safe-haven dollar is finding fresh demand.
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