Trump signs pro-democracy bill, USD/CNH spikes up - ING
|Robert Carnell, Chief Economist Head of Research, Asia-Pacific, at ING Bank talks about the emerging signs of stabilization, especially after Trump signs Hong Kong SAR pro-democracy bill into law and there is no evidence of any spillover to Asia from the currency turmoil in Latam.
Key Quotes:
“I had been wondering if President Trump was just going to leave Congress' pro-democracy bill on his desk and pretend it had not arrived. I don't think he wants to inflame trade tensions.
And I get the sense that he sees this as a problem for China and Hong Kong, and maybe is reluctant to get involved. He also knows that President Xi will not be impressed with this, and he has a lot of time for him.
Having said that, he has now just signed the bill, so any speculation over whether he would or not is now totally redundant. This is probably why USDCNH has spiked higher today - I can't see any other reason for this. but it already seems to be coming off again as I write.
We aren't of the view that this changes a great deal, either on the trade front, or in terms of any potential for renewed protesting in HK, though Iris mentioned when chatting to her today that the sources she follows indicate a return to protests shortly.“
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.