- Analytics
- News and Tools
- Market News
- It will become increasingly difficult for U.S. and China to compromise on their ongoing trade dispute – TD Securities
It will become increasingly difficult for U.S. and China to compromise on their ongoing trade dispute – TD Securities
Ned Rumpeltin, the European head of FX strategy at TD Securities, points out that in a surprise move, the US Treasury has designated China as a currency manipulator.
- “Given the deterioration in relations between the two countries in recent days, a further escalation was expected – particularly with USDCNH above the key 7.00 threshold. The question was what form that would take.
- The situation remains highly fluid and complex, but it appears China has opted for a more measured initial response. The official USDCNY "fixing" for Tuesday came in at a relatively tame 6.9683. We think the PBOC has broadcast its desire for a more restrained reaction in FX markets. This is, however, highly dependent on how developments evolve from here.
- That said, we do not see the light at the end of this tunnel. We are concerned that as we get deeper into a tit-for-tat cycle between these two governments. This suggests it will become increasingly difficult for both sides to back down and find room to compromise on their ongoing trade dispute. This, we think, could see markets continue to reprice for weaker global growth and rising political tensions.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
