Breaking: US and China make no progress on key trade issues in two days of deputy-level talks - SCMP Sources

  • Chinese delegation refuses to talk about forced technology transfers - High-level talks are expected to last for only one day,
  • Trade talks are doomed to fail from the get-go.
  • AUD/JPY is down 0.30% on the soured sentiment. 

South China Morning Post sources have come with a piece that has sent the Yen on a hike across the board, advancing some 30 pips vs the greenback, saying:

  • US and China make no progress on key trade issues in two days of deputy-level talks, sources say.
  • The Chinese delegation refuses to talk about forced technology transfers, a core US grievance in the negotiations, a person with knowledge of the meetings says.
  • High-level talks are expected to last for only one day, with Liu He and his team now planning to leave Washington on Thursday.

Overnight,  US stocks were elevated on a report from Bloomberg News that had suggested China was open to a limited tariff resolution with the U.S. Also, the Financial Times indicated that China had offered to increase by 50% purchases of agricultural products from U.S. farmers.

However, as ever, the headlines were conflicting with a late statement from China poured cold water over such optimism and said that the US had damaged any goodwill following the blacklisting of Chinese companies by the US State Department the prior day, announcing that Beijing has little hopes of a trade deal breakthrough this week - and seems we have confirmation now that these trade talks are doomed to fail from the get-go and its back to risk-off. AUD/JPY is down 0.30% on the soured sentiment. 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD trades around 1.09 amid upbeat German data, thin liquidity

EUR/USD is trading around 1.09 as ongoing SIno-American tensions boost the safe-haven US dollar. The German IFO figures for May beat expectations with 79.5 points in May. Coronavirus figures in Europe are declining.


GBP/USD is trading below 1.22 amid negative rates speculation

GBP/USD is trading below 1.22, as investors continue speculating about the BOE setting negative rates. PM Johnson is under pressure after his senior adviser violated the lockdown. The UK is on a bank holiday today.


Forex Today: Dollar in demand amid high Sino-American tensions, thin liquidity expected

The new week has kicked off with dollar strength as the US and China have kept tensions high. Thin liquidity and potential erratic movements may occur as the United States and United Kingdom are on holiday.

Read more

Gold trades with modest losses, holds above $1722 support zone

Gold met with some fresh supply on Monday, albeit lacked any strong follow-through selling and was last seen trading with only modest losses, just below $1730 level.

Gold News

USD/JPY clings to gains near 50-day SMA, bulls await a move beyond 108.00 mark

USD/JPY regains some positive traction on Monday amid a positive mood around equity markets. Concerns about worsening US-China tensions seemed to be the only factor capping further gains. Sustained move beyond 50-day SMA, 108.00 mark needed to confirm any near-term bullish bias.