US and China have landed a 'phase one' deal – Danske Bank

Sandeep Kanihama FXStreet Contributor

Danske Bank analysts note that stocks and other risk assets rallied this morning on news that the US and China have landed a 'phase one' deal.

Key Quotes

“US sources close to the negotiations reported that the tariff hike planned for Sunday is off the table and that the US has offered to cut existing tariff rates by up to 50% in exchange for Chinese agricultural purchases in the order of USD50bn and increased protection of intellectual property rights.”

“We expect some official announcements from both China and the US soon to confirm this deal. If confirmed, we believe this is good news as it means the two sides can move on to phase two. We still see a 50-50 probability a phase-two deal can be reached next year.”

“Asian markets jumped overnight, with Japan's Nikkei 225 gaining more than 2.5%, and US index futures suggest the equities rally will continue today. Treasuries extended a tumble, with 10Y yields down to 1.91%.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.