The dollar rose to one week highs yesterday and is strong this morning, as investors turned away from riskier assets in the wake of global economic slowdown fears.
Face-to-face talks are set to resume for the US-China trade deal today, with US Treasury Secretary Steve Mnuchin and US Trade Representative Robert Lighthizer in Beijing for the remainder of the week. However Lighthizer seems unsure that a deal will be reached soon, if at all: “If there’s a great deal to be gotten, we’ll get it. If not, we’ll find another plan.”
This sounds ominously reminiscent of Trumps ‘walk away’ approach to the North Korean nuclear deal, so we will see if US-China talks play out in the same way. Next week, Vice Premier Liu He, China’s top negotiator on the trade deal, will head to Washington.
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