Trump wants US-China truce

US-China Open Up?

Donald Trump's statements regarding the China - U.S deal to suspend the tax increases that developed during the last weekend seems not to align with the Administration's official explanation on the matter.

After the G20 meeting, the U.S. president explained that the deal made with China is "one of the largest deals ever made." He said that Chinese President Xi Jinping's administration "will be opening up" and "getting rid of tariffs." On the other hand, the White House did not support Trump's comments about China stopping taxes, but pointed rather to a provisional deal not to increase them further, and it provided limited evidence of China "opening up."

The Week that was

Last Thursday stocks fell due to anxieties about a no-trade agreement between China and the U.S. The S&P 500 dropped about 0.19% to 2,737.82 and that was the deeper level for the first time in four days. The Dow Jones Industrial Average dropped 27.58 points to 25,338.83 and gave back a three-day winning streak. The Nasdaq Composite dropped 0.25%. Last Friday Oil prices were steady due to expectations that Russia and OPEC will presumably find a solution or some kind of oil production cuts the following week, although large U.S. stocks held markets in line.

Main Focus This Week

Regarding the Aussie Dollar, the RBA rate report and interest rate decision will be at the center of attention this Tuesday. As rates are expected to be left the same, we need to pay close attention to details to reveal the probable movement of the currency. Now the popular Loonie, on the other hand, has the BoC that was especially hawkish, as the economic signs have still to support another rate hike for the end this year. That will provide the Loonie a chance for a bounce and the BoC to stand strong on its direction. As for the most popular safe haven U.S Dollar, On Wednesday Powell’s statement will be of a material importance, especially if we examine the recent change in FED’s sentiment that the neutral policy has probably directed to a more dovish stance on rates for next year.