China’s import tariff rise has been delayed as talks appear to be coming through. Trump Tweeted that ‘…I will be delaying the US increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for US & China!’ He later declared that the China trade deal ‘(and more)’ was in ‘advanced stages’. The delays and Brexit optimism caused the dollar to dip against the pound, at 0.760.
Today, we’ve got a ream of housing data, including housing starts and building permits, with a small decrease from the previous release widely expected. An increase in the Chicago national activity index could well be a boost for the dollar later today.
In the meantime, Trump, before heading to Vietnam for a summit with Kim Jong Un, took to Twitter again, saying that ‘Oil prices are getting too high – Opec should relax and take it easy’ – causing oil prices to sink three percent. On a positive note, however, the UK and US have agreed that derivatives trading and clearing between the two economies will continue post-Brexit.
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