A senior Chinese official said on Tuesday that it is difficult to proceed with trade talks with the United States while Washington is putting “a knife to China’s neck”, a day after both sides heaped fresh tariffs on each other’s goods. When the talks can restart would depend on the “will” of the United States, Vice Commerce Minister Wang Shouwen said at a news conference. Separately, the Chinese government’s top diplomat told businesspeople at a meeting in New York that talks could not take place against the backdrop of “threats and pressure”, the Foreign Ministry said. Certain forces in the United States have also been making groundless criticisms against China about trade and security issues, which has poisoned the atmosphere for Sino-U.S. ties and is highly irresponsible, State Councillor Wang Yi was quoted as saying, without naming anyone. “If this continues, it will destroy in an instant the gains of the last four decades of China-U.S. relations,” Wang told members of the U.S.-China Business Council and National Committee on United States-China Relations.
In currencies, the EUR/USD rose to 1.1815 yesterday after the European Central Bank (ECB) head Mario Draghi took note of the “relatively vigorous” pick-up in the underlying price pressures and rising wage-price inflation. Hawkish comments from Draghi had a significant impact on EUR volumes overnight. Regarding GBP/USD, it hovers between 1.3070 and 1.3170 following the sharply fell of Friday after the UK Prime Minister Theresa May informed markets that Brexit negotiations have reached a standstill.
In commodities, Gold glued to the $1200 see-saw level this morning in sight of the upcoming FOMC. Regarding Oil, continues to hold on to astonishing gains as the latest move was helped along by headlines from OPEC’s weekend meeting as the organisation agreed to no immediate supply boosts.
For today the main economic calendar activity is the CB Consumer Confidence affecting mostly the USD.