WH Trade Adviser Navarro: China trade deal is 'over', risk knocked down

Dhwani Mehta FXStreet

When asked about the trade agreement in a Fox News interview on Monday, White House Trade Adviser Peter Navarro said that the US-China trade deal is over, as Beijing failed to pay any heed to Washington’s alarm over the coronavirus outbreak.

Key quotes

“It’s over.”

“The turning point came when the United States learned about the spreading coronavirus only after a Chinese delegation had left Washington following the signing of the Phase 1 deal on Jan. 15.”

“It was at a time when they had already sent hundreds of thousands of people to this country to spread that virus, and it was just minutes after wheels up when that plane took off that we began to hear about this pandemic.”

Market reaction

The cat is finally out of the bag now after the simmering tensions between the US and China, as the risk sentiment crashes on the breakdown of the trade deal.

S&P 500 futures wiped out gains and dropped over 1% to now trade around 3065 levels. Asian equities are back in the red zone, led by the slide in the Japanese Nikkei 225 index.

AUD/USD drops over 70-pips to now trade around 0.6870, down 0.50% on the day while USD/JPY clings onto the 106.75 support.

The flight to safety rescues the dollar bulls, as the US dollar index pops to 97.25 levels, up 0.20% so far.

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.

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