Top trade negotiators from the two economic giants were scheduled to meet in Washington on Thursday and Friday to try to end a bruising 15-month-old trade war.
The United States’ and China’s top trade negotiators were set to meet on Thursday for the first time since late July. New irritants between the world’s two largest economies threatened hopes for progress.
Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will seek to narrow differences. Efforts are made to avoid a scheduled Oct. 15 tariff rate increase on $250 billion worth of Chinese goods. Without significant progress, U.S. President is set to hike the tariff rate on Chinese goods to 30% from 25% next Tuesday. China is unlikely to be willing to make an easy compromise with a U.S. president who seems increasingly vulnerable to domestic political pressure.
Deputy-level meetings between U.S. and Chinese trade negotiators began in Washington on Monday, with little immediate signs of progress.
Some media reports suggested both sides are considering an “interim” deal that would suspend planned further U.S. tariffs. Trump has repeatedly dismissed this idea, insisting that he wants a “big deal” with Beijing addressing core intellectual property issues.
START TRADINGForex – US-China top trade negotiators back to the table
The progress of trade negotiations between the United States and China kept markets on edge. The prospects of a partial deal fuelled appetite for trade-oriented currencies. Markets were bombarded from all sides by denials and counter-denials on both the U.S.-China trade talks.
The dollar weakened broadly against its rivals on Thursday, falling to 0.3% to 98.845, nearing a one-week low. It weakened as much as 0.4% versus the New Zealand and Australian dollars.
The Australian and New Zealand dollars led gains against the greenback.
A dive in the dollar catapulted the euro higher. The euro was up 0.3% at $1.09785 as the dollar weakened. The euro was a sell against the dollar, though, since it was likely to maintain its status as a safe-haven currency.
The pound dipped to a one-month low against the euro ahead of a meeting between the British and Irish leaders. Versus the euro, sterling was at 90.03 pence, after touching lows of 90.07. Brexit outcomes remain unclear just three weeks before Britain is due to leave the European Union. The pound climbed 0.3% against a broadly weak dollar, last trading at $1.2238.
Oil prices also dipped on wariness over U.S.-China talks. Brent crude futures fell 0.15% to $58.23 a barrel. WTI crude lost 0.11% to $52.53 per barrel.
Gold prices scaled one-week highs on Thursday, holding ground above $1,500 an ounce. Investors flocked to the safety of bullion following contradictory reports about U.S.-China trade talks. Spot gold gained 0.1% to $1,506.78 per ounce as of 0724 GMT, having notched a peak of $1,516.77 early in the session.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money