US President Trump would not reopen trade talks with China to relax terms – CNBC correspondent

Ross J Burland FXStreet

US President Donald Trump would not reopen trade talks with China to relax terms – according to a CNBC correspondent. Earlier, the White House advisor Peter Navarro threatened retaliation against China for its role in the spread of the coronavirus pandemic as tensions between the world’s two largest economies continue to rise.

“A bill has to come due for China,” Navarro said during an interview on CNBC’s “Squawk Box.” “It’s not a question of punishing them, it’s a question of holding China accountable, the Chinese Communist Party accountable.”

Market implications

Bulls are doing a double-take on equity markets as the trade war rhetoric builds and while invstors mulled over COVID-19 risks of relaxing the lockdowns: Wall Street Close: US benchmarks were mixed on COVID-19 sentiment

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 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 attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.