US Chinese Trade relations continue to drive direction and fill headlines in the currency markets. With apparently little progress being made in ongoing trade talks it’s been announced that existing trade tariffs set by the US have now more than doubled to 25% on Chinese goods to the value of around $200Bln. The Chinese government have said they “deeply regret” the decision by the US and will take “necessary counter-measures”.
The tariffs have been imposed right in the middle of a two-day meeting between the two nations. Risk sentiment remains subdued and safe-haven purchases still outweigh other trades.
The day ahead
The docket is full today with significant releases from the UK, in the form of UK GDP and the US which is due to release inflation figures for last month.
In the UK, Brexit tensions remain unchanged and reports continue to circulate that the PM is under pressure to confirm the date she is going to step down. The Pound remains vulnerable to headlines.
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