FxWirePro: Sino-American trade negotiations to dominate volatility this week and next

This week the focus in on U.S. and China and the trade negotiations,

• U.S. President Donald Trump’s weekend tweet, “For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars.... ....of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” brought the focus on Sino-American trade negotiations. The tweet was reportedly in response to China’s aim to renegotiate parts of the deal that has already been agreed upon.
• Thanks to the President’s tweet, the focus for the week would remain on the negotiations since Chinese delegations are expected to arrive in Washington.
• Initially, it was reported that China plans to cancel the delegation and stocks tanked further across the world. However, it is now apparently clear that the delegation is on its way to Washington led by Chinese Vice Premier Liu He.

It is not clear at this point what Mr. Liu will be offering - would he cave into the President’s demand or China is going to take a stance. Mr. Liu is set to arrive on the 8th of May for the meeting.