US-China trade conflict showing signs of hope – ABN AMRO

Sandeep Kanihama FXStreet Contributor

According to Han de Jong is Chief Economist of ABN AMRO, the recent announcement from China that their vice PM will lead their delegation at the next round of trade talks must be a good sign for the ongoing US-China trade conflict.

Key Quotes

“The more senior people tend only to come if their underlings have made sufficient progress. I also think both sides are aware of the risk of doing significant damage to their own economies by escalating the conflict. US president Trump will be starting to think of next year’s elections.”

“The last thing he needs is an economy in trouble or an extended bear market in equities. The best way for him to reduce such risks is to do a trade deal. He is a master at selling any deal as a victory, so it really doesn’t matter what the deal includes. The Wall Street Journal article claiming that US Treasury Secretary Steve Mnuchin would favour rolling back the tariffs imposed on imports from China (not confirmed) may also be a positive signal.”

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 looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold moves closer to $5,150 amid sustained safe-haven flows

Gold climbs back above $5,100 during the Asian session on Wednesday, moving away from an over one-week low, touched the previous day. Sustained safe-haven flow, amid escalating geopolitical tensions in the Middle East, acts as a tailwind for the bullion. However, a bullish US Dollar and reduced bets for more aggressive easing by the US Fed might keep a lid on the non-yielding yellow metal ahead of the US ADP report and ISM Services PMI later today.