Risk Is Back On After the US-China Deal Comes to Life Again
Talks between US and China were put on hold for a while, but comments about them resuming again have turned the sentiment positive
Markets have been pretty quiet today despite a number of important economic reports being released from Europe and the US. But, the data was sort of mixed, which left traders puzzled. Although, the sentiment has been pretty negative for weeks now, as shown by the surge in safe havens during this period.
That’s not the case anymore as sentiment has improved considerably in the last hour or so, with USD/JPY jumping around 150 pips higher. The reason for this are the rumours that the US and China might get it on again with trade talks.
A report from the Chinese media Xinhua released a while ago said that China’s Lui He spoke with Lighthizer and Mnuchin. They will keep the conversation going via phone calls in the coming weeks, which has brought back hopes of a trade deal being reached soon. Safe havens have turned bearish on the day, while commodity Dollars made a 50 pip jump. Things are calming down now so I am thinking about shorting NZD/USD after this jump.
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