According to analysts at Danske Bank, market sentiment was dented by news that the Trump administration is not only planning to slap new tariffs on French goods (and preparing for a next tariff round in the Airbus subsidies battle with the EU), but also mulls going ahead with the planned 15 December tariff hike on Chinese imports if nothing changes in the remaining two weeks.
“While talks between the two sides continue, no big meeting is scheduled. Trump yesterday also indicated some patience about striking a deal with China only after the US election, casting further doubts on a 'phase one' deal. To us the comments suggest some frustration on the US side on how much China is willing to give in exchange for a tariff rollback. However, without the tailwind from a 'phase one' deal with China, Trump will face a difficult battle in important 'farming' swing states in the upcoming election in our view.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.