A new series of talks between the United States and China to resolve their trade war will take place in Washington on Tuesday. Follow-up sessions at a higher level will come later in the week, the White House said.
The talks follow a round of negotiations that ended in Beijing last week without a deal. However, officials said that last week’s talks had generated progress on contentious issues between the world’s two largest economies.
The talks are aimed at “achieving needed structural changes in China that affect trade between the United States and China. The higher-level talks will start on Thursday. China confirmed that Vice Premier Liu He will visit Washington on Thursday and Friday for the talks.
U.S. tariffs on $200 billion in imports from China are set to rise to 25% from 10% if no deal is reached by March 1. Trump suggested last week that he could extend the deadline for the talks. He also reiterated in a speech on Monday that the negotiations had been fruitful.
START TRADINGForex – Commodities – New round of U.S.-China trade talks to begin
The euro fell further after data showed Italian industrial orders dropped 5.3 percent in December from December 2017. The common currency was already lower as investors shifted focus from progress in U.S.-China trade talks to European economic weakness. The euro had gained on Monday as expectations grew for resolution of the U.S.-China trade conflict. The euro slipped 0.3% to as low as $1.1275, near a three-month low of $1.1234.
Elsewhere, the yen weakened to 110.765 against the dollar from 110.45 after Japan’s central bank governor raised the possibility of further policy easing.
The British pound held above $1.29 on Tuesday after labour market data showed workers’ pay growth held at its fastest pace in a decade in late 2018. Investors’ focus quickly shifted back to Brexit talks between London and Brussels. The pound was unchanged versus the euro at 87.53 pence per euro.
Oil fell from its 2019 high of almost $67 a barrel on Tuesday as concerns about the progress of U.S.-China trade talks and slowing economic growth countered lower supplies.
Brent crude slipped 64 cents to $65.86 a barrel by 1435 GMT, having reached a 2019 high of $66.83 on Monday. U.S. crude was down 26 cents at $55.33.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.