China sticks to its stance that some U.S. tariffs must be rolled back for a phase one deal. Further, conflicting messages from U.S. President Donald Trump kept a lid on the advance.
Completion of a phase one deal between the world’s two biggest economies had been initially expected in November. Trade delegations on both sides remained locked in discussions over “core issues of concern”.
Lack of clarity on whether any kind of agreement can be reached before Dec. 15, when additional U.S. tariffs kick in on Chinese goods. But focus was also on how much damage the trade war is causing and whether the signs of economic stabilisation seen in the euro zone and Chinese data can continue.
The Uighur Act of 2019 clouded prospects for a near-term deal to end the 17-month US -China trade war. China warned that U.S. legislation calling for a tougher response to Beijing’s treatment of Uighurs will affect bilateral cooperation.
Trump’s remarks that the talks were going “very well” after he had earlier said it might take until late 2020 to reach an accord.
With a new round of U.S. tariffs on Chinese goods scheduled to take effect in less than two weeks, the possibility of another breakdown is growing.
Investors fear that the U.S.-China standoff will add to the slowdown in the global economy. Traders are also bracing for the closely-watched U.S. non-farm payrolls report due Friday.
START TRADINGForex – China sticks to US tariff rollback
Most currencies traded in tight ranges after turmoil induced by conflicting headlines on the fate of a phase one U.S.-China trade deal. As investors tilted towards optimism, riskier assets rose and safe havens such as the Japanese yen weakened.
The US dollar retreated on Thursday towards one-month lows against a basket of currencies, pressured by weaker-than-expected economic data.
The Canadian dollar traded at a near one-month high of 1.3203 per greenback, after the country’s central bank held interest rates steady.
The Australian dollar slipped 0.2% to $0.6838 after weak retail sales and exports data. But the kiwi climbed to a four-month high, as softer-than-expected banking reforms led to a reduction in rate-cut expectations.
The yen traded down 0.07% at 108.77 per dollar, ceding some of the previous day’s gains.
The euro firmed marginally against the dollar to $1.1086 while the greenback edged down 0.14% against a basket of currencies to 97.517. The common currency has also benefited from recent better-than-expected data, gaining 0.6% against the dollar this week.
The Sterling traded at a new seven-month high of $1.3146. Against the euro it extended gains to a new 2-1/2-year high of 84.31 pence. The British pound is up more than 1.5% this week to the dollar.
Oil prices rose on Thursday ahead of an OPEC meeting. Members are expected to agree on deeper output cuts to prop up prices and prevent a glut next year.
Brent crude futures were up 44 cents, or 0.7%, to $63.44 a barrel by 1137 GMT. Brent surged 3.6% on Wednesday. WTI crude futures were up 17 cents to $58.60 a barrel. They settled 4.2% higher on Wednesday.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money