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FXBrokerFeed reports on stability in money markets across the world as optimism grows that a phase one trade deal between the U.S. and China is in the works. The stability is expected to turn into a surge once the deal is announced.
Forex broker comparison service FXBrokerFeed brings you news and trends in the FX broker market regarding stability in markets across the world in anticipation of a phase-one trade deal between the U.S. and China.
Averting Further Escalation
The anticipated phase-one trade deal, which will be the first step in stopping the costly trade war between two of the world’s biggest economies, is expected to stop further escalation in the war. Timing is crucial since President Trump is expected to announce more tariffs of 15% of about $160 billion worth of Chinese exports, according to FXBrokerFeed.
FXBrokerFeed quotes several sources, including the Wall Street Journal, saying that representatives from both countries are urgently working on finalizing a deal. The deal will be announced before Sunday, the due date when President Trump is expected to announce the new tariffs. However, there is some skepticism that a solid deal may not be forthcoming considering all the setbacks witnessed in the past. Nevertheless, the U.S. is expected halt the new tariffs as a show of good faith, which will also be good for the markets.
Both the U.S. and China have a lot to lose if the trade war escalates further. The trade war is hurting the United States’ agricultural sector, and other industries are also feeling the pinch of higher prices for their goods and services. President Trump’s re-election also hinges on how well the trade war turns out. Across the seas, the Chinese Premier is also facing a lot of pressure from high-ranking members of the ruling party to bring the trade war to an end with minimal compromise from the Chinese side.
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