Swissquote Bank Research Team
Swissquote Bank Ltd
There is a high likelihood that the meeting of US President Donald Trump and Chinese President Xi Jinping later this month won’t be game changing. The best-case would be that both leaders confirm their intent to maintain talks. The US’s latest request to China concerns 142 different items, with questions ranging from trade surplus to China mainland market opening, so this will require time from both sides. The request also raises the prospect of the US implementing further duties, currently valued at 10% of USD 200 billion and expected to reach 25% by the end of the year. Although the Chinese government is showing willingness negotiate, it appears less likely that a resolution will be met promptly. Accordingly, we expect the Chinese yuan to remain highly influenced by media announcements in the coming weeks leading to the Trump-Xi meeting.
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This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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