Trump Administration – Negotiations With China Have Gone Better Than Expected

The financial markets from across the world have been waiting for how the events of US-China trade negotiations unfold. After a recent announcement from the White House on Thursday, October 10^th, 2019, that the trade talks have gone better than expected, it has poured the life back into the financial markets that have started to respond accordingly.

Yesterday’s announcement was the first time in the past two months that the U.S – China trade war has appeared to be directing towards ease. Businesses belonging to both the parties have started to show optimism that the officials from the United States of America and China may be able to put an orderly end to the ongoing trade war. There have been reports of high probability that the U.S is likely to postpone the plans of imposing increased tariffs on Chinese goods.

Chinese Delegation Will Meet President Trump In The White House On Friday

Originally planned for two days (Thursday and Friday), it was previously reported that the rising tension has reduced the meeting to one day only with Vice Premier Liu He and his team expected to depart for China after concluding the negotiations by the end of Thursday. In yesterday’s official statement by President Trump, however, it was declared that owing to how well the negotiations have unfolded, he has invited the Chinese delegation to the White House on Friday to further discuss the crucial matters concerning trade and business at large.

In a report from Sydney, senior Forex strategist, Mr. Rodrigo Catril of National Australia Bank, it was highlighted that the latest developments in U.S – China trade talks strengthen the prospects of a potential interim deal. Such announcements have kept offshore Chinese Yuan (CNH) from sinking as well. Towards the end of the day on October 10^th, 2019, CNH was seen rallying up and hit the 7.108 level against the U.S dollar. This marks the highest level for CNH in almost a month.

U.S Dollar Index Failed To Gain Strength

The United States Dollar Index, however, was seen crashing on Thursday to 98.709 level; the lowest it has been in almost three weeks. As per the financial experts, however, there were multiple factors in play that kept the USD index under pressure. While it may have been affected by a surge of positivity after Ireland’s Prime Minister Mr. Leo Varadkar expressed his high hopes for a Brexit deal between the UK and the EU that saw both the Sterling and Euro making new highs in the Forex market, the figure for consumer price also failed to favor the U.S economy as per the data released on Thursday. Improving the chances of another rate cut this year, the data may have kept the US dollar index gasping for breath.