US Secretary of State Blinken: China's provocative actions a significant escalation

Dhwani Mehta FXStreet

US Secretary of State Anthony Blinken is on the wires again, via Reuters, saying that “China's provocative actions a significant escalation.”

Additional quotes

United States has told China repeatedly it does not seek a crisis

Pelosi's visit was peaceful, no justification for China’s extreme response

No justification for China’s "extreme disproportionate and escalatory" response to Pelosi visit

Serious concerns that actions by Beijing will destabilise entire region

United states will stick by allies in region

We will fly, sail, operate wherever international law allows

United states will not be provoked by China’s actions

US will continue to make maritime transits through Taiwan strait

US defense secretary has ordered that USS Reagan will remain on station

We will continue to press the regime to release those unjustly detained in Myanmar

Russia visit to Myanmar flies in the face of Asian’s efforts to achieve peace

We stand in strong solidarity with Japan over China’s dangerous actions

We have open lines of communication with China

Reiterated position that China should not use Pelosi’s visit as pretext for provocative actions

Question of Pelosi’s visit came up when he spoke to China’s foreign minister Wang Yi in Bali last month

No possible justification for what China has done after Pelosi visit to Taiwan, have urged Beijing to cease such actions

Nothing inevitable about crisis, conflict; incumbent upon us and China to act responsibly

We won't take actions to provoke a crisis

We've said all along that the differences between mainland and Taiwan need to be resolved peacefully, not by force

Last thing countries in region want is to see differences resolved by force

What we don't want are efforts by any country including China or Russia to disrupt intl peace and security

Expects other countries will join US Indo-pacific economic framework

Market reaction

Markets remain cautiously optimistic so far this Friday, reflective of the 0.14% gains in the S&P 500 futures. Meanwhile, the US dollar index clings onto its recovery gains near 105.85, adding 0.15% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.