US-China no deal, at least not for now
I hope everybody had a great weekend, welcome back.
US and Chinese negotiators parted without a deal . Not totally unexpected but the US continues in it’s isolation as G7 financial leaders (well 6 vs US) made front against US, defending multilateralism and throwing the hot potato over to next week’s political leaders G7. China has already warned to step away from any deal if the US would move forward with imposing tariffs. Rumours are now flying that Trump could decide to walk away from Nafta even before next week’s G7 as the negotiators haven’t reached an agreement on the the Sunset clause and some other hot irons. Expecting many more comments as the week unfolds and algo’s chewing on every bone again.
The data start off with UK’s construction PMI’s at 8:30 gmt. US factory orders and durable goods at 14:00 gmt, two indicators which will become under increasing scrutiny as Trade develops. Next up will be RBA’s the night after and then it’ll go in crescendo with PMI’s across the globe.
That’s about what i’ve seen that could move the markets on the open. I was saying on my Friday’s post that this US isolation on trade which, if no agreements would be reached, will be counterproductive for US’ manufacturing as well as globally, will start to weigh heavier on risk and the USD in general imo.
Here are the opening rates. For now all pretty close to Friday’s close.As usual take with the necessary caution if you decide to trade right off the bat as the market is still young and illiquid at this time.
Have a great week in our company again.