Pompeo: Had an extended exchange of views on US-China relations with Chinese diplomat

Risk-FX back on the lead on continuous positive reports with respect to Chinese and US relations.
US Secretary Of State Pompeo has had an extended exchange of views on US-China relations.

Ross J Burland FXStreet

Reports are filtering through that the US Secretary Of State Pompeo has had an extended exchange of views on US-China relations with Chinese diplomat Yamg-Jiechi.

This follows news that the US Trade Representative (USTR) Lighthizer's office in a published statement today had announced that additional tariffs on some Chinese imports, including cell phone and laptop computers, will be delayed until December 15. There were also reports that Chinese, U.S. chief trade negotiators held phone talks with China's Lui He apparently speaking with Lighthizer and Mnuchin. Trump also hinted that China has agreed to buy more agricultural products

FX implications:

The fact that the US and China are engaged in continuous diplomatic talks is positive for risk, as for a minute there, markets jumped the gun expecting that a trade deal may never be accomplished. For that reason, risk-Fx has switched the play role and the Yen is on the back foot, while the Aussie had been the best performer.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD remains bid near 1.1650 post-US ADP

Finally some respite for the risk complex see EUR/USD partially recover from the recent steep sell-off, this time hovering around the 1.1650 zone amid decent gains in a context of renewed selling pressure on the US Dollar. However, the duration and extension of this bounce should be put to the test amid the unabated tensions in the Middle East.

GBP/USD meets resistance around 1.3400

In line with its risk-linked peers, GBP/USD stages a modest comeback on Wednesday, although meeting some resistance around the 1.3400 neighbourhood. Cable’s humble recovery comes on the back of the fresh downward bias in the Greenback amid a marginal improvement in the global sentiment and steady geopolitical effervescence.

Gold flirts with $5,200 amid safe haven demand

Gold partially fades Tuesday’s sharp pullback, regaining the $5,200 mark per troy ounce on the back of the resurgence of investors’ demand for the safe-haven space. The precious metal remains well propped up by the deterioration of the geopolitical scenario in the Middle East, while the softer tone in the US Dollar collaborates with the uptick.