US to make it easier for diplomats to meet Taiwanese officials – FT

Anil Panchal FXStreet

While adding to the US-China tussle story, the Financial Times (FT) came out with the news saying, “The Biden administration is preparing to issue guidelines that would make it easier for US diplomats to meet Taiwanese officials by adopting some of the changes introduced by Donald Trump.”

The early Tuesday news also states that such a move will provoke China while mentioning that the original restrictions on meetings were introduced after the US switched diplomatic recognition from Taipei to Beijing in 1979. However, in January, Mike Pompeo, then secretary of state, rescinded many of the restrictions after Congress in December passed the Taiwan Assurance Act, which mandated a review within 180 days.

It’s worth mentioning that a different story suggests the US and Japan are likely to take note of Taiwan during their recent negotiations.

FX implications

Given the escalation in the Western drive to battle China over multiple issues, recently backed by Japan, risk-off mood should gain momentum. However, vaccine optimism and stimulus hopes seem to keep the markets mostly dry ahead of this week’s US employment report.

Read: S&P 500 Futures reverses early Asia gains amid mixed clues, strong US Treasury yields

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold retakes $5,200 amid sustained haven demand, softer USD

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions persist ahead of the US-Iran nuclear talks, which underpin demand for safe-haven assets. Additionally, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority in the United Kingdom is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.