Trump offers another hope for a trade deal with China

President Trump announced that the deal with China may be signed soon.
The market may demonstrate positive reaction to the news.

Tanya Abrosimova Independent Analyst

On Saturday, December 21, the US President Donald Trump said that the United States and China were close to signing a so-called Phase One trade pact.

Speaking at Turning Point USA event in Florida, he said:

“We just achieved a breakthrough on the trade deal and we will be signing it very shortly.”

Trump also announced on Twitter that he had a good talk with his Chinese counterpart President Xi. Apart from American agricultural products, they discussed North Korea and Hong Kong issues and pushed the deal to the formal signing procedure.

Notably, the Phase One deal announced earlier this month is supposed to be a part of an attempt to put an end to a protracted trade war between the world’s two superpowers.

Under the deal, China would increase its purchases of American farm products, while Trump administration would reduce some tariffs.

Earlier this month, the Treasury Secretary, Steven Mnuchin mentioned that the deal was close to the final stage.

The news may inspire risk-on rally on the markets on Monday morning.

Author

Tanya Abrosimova

Independent Analyst

GBP/USD clings to gains near 1.3650 after mixed UK data

GBP/USD trades in positive territory at around 1.3650 in the European session on Friday as the upbeat PMI data supports Pound Sterling despite disappointing Retail Sales figures. Meanwhile, the US Dollar (USD) struggles to stay resilient against its peers following the Treasury Department's decision to boost long-term bond purchases earlier in the week, helping the pair hold its ground ahead of US PMI data.

EUR/USD holds near 1.1700 ahead of US PMI data

EUR/USD consolidates its weekly gains at around 1.1700 in the European session on Friday following the mixed PMI prints from Germany and the Eurozone. Investors await preliminary August PMI surveys for the US, while the persistent USD weakness allows the pair to keep its footing.

Gold hits fresh high since June above $4,550 as receding Fed hike bets undermine USD

Gold sticks to modest gains near its highest level since early June, touched earlier this Friday, and trades just above $4,550 heading into the European session. The commodity is looking to build on the breakout momentum above a technically significant 200-day Simple Moving Average amid a weaker US Dollar. Traders scaled back their bets on an immediate interest rate hike by the Fed after the latest US inflation data released last week signaled signs of cooling price pressures.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

The Japanese Yen’s historic rescue is running out of steam

The Japanese Yen staged a spectacular 900-pip comeback after a historic US-Japan intervention. Less than three weeks later, that rescue is already showing signs of fading. The Yen is benefiting somewhat from a softer US Dollar, but its downward trend is likely to resume as the underlying pressure on the currency has not disappeared.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.