The dollar was mostly flat yesterday as the markets awaited a definitive response from China in reaction to the Hong Kong bill. China warned the US that it would take “firm counter measures” after President Trump signed the Human Rights and Democracy Act into law, supporting Hong Kong protesters.
China’ foreign ministry summoned the US ambassador to demand that Washington stop interfering. Hong Kong’s government said that the bill would not help to ease the situation. The President also signed a second bill which bans the export of crowd-control munitions to the police in Hong Kong. However, there has been no strong indication yet that a phase one trade deal is in jeopardy.
Trump said, “[The bills] are being enacted in the hope that leaders and representatives of China and Hong Kong will be able to amicably settle their differences, leading to long-term peace and prosperity for all.”
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