Daily Market Commentary

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Thursday December 5th, 2019

Conflicting comments on the state of the Phase One agreement and the looming December 15th tariff’s put pressure on the US$. The US$ retraced to a one month low vs the major currencies on weaker than expected economic data and Sino/US trade uncertainties. Beijing reframed from any fresh commen...
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Wednesday December 4th, 2019

The possible signing of the Sino/US trade deal continues to fade after US House of Representatives passed the Uighur act, a bill supporting the Chinese Muslim minority. Beijing promised retaliation and added that the Uighur bill will affect cooperation in « important areas ». A conflicting repor...
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Tuesday December 3rd, 2019

The US President says a China trade deal might have to wait until after the 2020 US election. Mixed comments from the White house on the state of the state of the Phase One trade deal has made markets nervous. The US$ weakened on a combination of weak manufacturing data and the prospect of fresh [&h...
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Monday December 2nd, 2019

The lack of negative Chinese trade rhetoric and upbeat Chinese manufacturing data helped give trade-exposed currencies a boost. Safe-haven yen fell to six month lows, while NZD and AUD rallied on positive Chinese manufacturing. Just 13 days until the schedule US tariffs are set to start on Chinese g...
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Friday November 29th, 2019

Currency markets are relatively stable as they await China’s response to the US signing the HK bill into law. The initial response from China has been muted, and with the Dec 15th tariff deadline looming hopes are the trade deal may yet be resolved. US$ firmed and is set for its strongest mont...
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Thursday November 28th, 2019

The future of the Sino/US trade deal has become uncertain after the US President signed the Hong Kong bill into law yesterday. China has responded angrily, summoning the US ambassador and warning the US of consequences over the new law. In other news, yesterdays data showed the US economy is grow a...
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Wednesday November 27th, 2019

Trade talk optimism grew after the US President suggested that the Sino-US talks are in their « final throes ». The president added most of the deal is done and that to « seal the deal » depends on him. Realistically with US Thanks Giving tomorrow, it only leaves two weeks to sign the agreem...
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Tuesday November 26th, 2019

The optimistic tone continues with reports that US and China have reached a « consensus » for a Phase One trade deal. The sticking point to signing remains the roll back of tariff’s, which the U.S. president said Nov. 8 he had not yet agreed to. New US tariff’s scheduled to be imple...
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Monday November 25th, 2019

Market optimism that the China & US could sign the « Phase One » accord is growing. China pledged a tougher stance on Intellectual Property rules, which has been a key sticking point for US negotiators. The US President has been relatively quiet and has yet to sign congresses Hong Kong bill....
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Friday November 22nd, 2019

The pendulum is swinging back from pessimism towards optimism with anticipation that the phase one trade agreement could be signed. The last couple of days has seen a number of positive comments coming from China expressing a willingness to talk. The Chinese are motivated to sign the phase one deal ...
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