The United States and China have started to outline commitments in principle on the stickiest issues in their trade dispute.
Marking the most significant progress yet toward ending a seven-month trade war, U.S. and Chinese negotiators are also discussing a 10-item list of shorter-term measures.
The world’s two largest economies are trying to beat a March 1 deadline for a deal that averts a scheduled increase in U.S. tariffs on $200 billion of Chinese goods to 25% from 10%. U.S. President Donald Trump has said he may be flexible on the deadline if he sees progress towards a deal.
The negotiators shall cover the following areas:
- Forced technology transfers and cyber theft
- IP rights
- Agriculture
- Services
- Currency
- Bilateral trade deficit reduction
- Enforcement mechanism
Forex – Commodities – PMI data sent Euro higher
The euro edged higher on Thursday after surveys showed business activity was surprisingly firm in February. French business activity rose more than expected as manufacturing growth helped offset the slack in services. The euro initially rose as much as 0.2% to the day’s high of $1.1364 after the PMI data. It then retraced some gains to stand 0.1% up on the day.
Broadly, the dollar index, which measures the U.S. unit against a basket of six major currencies, added 0.11% to 96.559 after minutes from the Federal Reserve’s last meeting revived expectations for a U.S. rate hike this year.
The Australian dollar fell after a Chinese port banned imports of the country’s coal. The Aussie fell 1% to $0.7086 in a volatile Asian trading session. It then retraced some losses to stand 0.7% down on the day.
Sterling fell slightly on Thursday after a British government source poured cold water on the prospect of an imminent Brexit deal, causing the pound to shed earlier gains. The pound was down 0.1 percent at $1.3035 by 1130 GMT. One-week sterling implied volatility – a measure of expected price swings in the pound – has risen, as traders get nervous about a possible parliamentary vote on the deal that is scheduled for Feb. 27.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.