There are some movements in the international exchange market. Steven Mnuchin is the United States Treasury Secretary. He said that existing tariffs on Chinese goods would most probably stay, pending the further trade talks.
On Wednesday, major currencies were closeted with tight ranges. Investors awaited the signing of a China-U.S. trade deal. The dollar is holding a one-week low against its rivals.
A formal agreement will be due in the early U.S. hours. It aims to draw a line under 18 months of the tit-for-tat tariff war that has hurt the global economy. Nevertheless, it most probably won’t end the trade dispute between the two countries.
A senior FX strategist at BNY Mellon in London is Neil Mellor. He said that he doesn’t think the market is thoroughly convinced about a closure on the trade conflict front. The issue caused a lot of damage to world economic growth.
The dollar was steady at 97.4 against a basket of its rivals. It is just shy of a one-week low at 97.29. In the offshore market, the Chinese currency was broadly steady.
The United States and China
A relatively volatile barometer of trade tensions is the Australian dollar. It was a shade weaker at $0.6893.
The United States President Donald Trump will sign the phase one trade deal with Lieu He, Chinese Vice Premier. The ceremony will take place at the White House at 1630 GMT.
Washington already agreed to delete tariffs on $160 billion worth of Chinese-made electronics. And it will halve the existing $120 billion tariffs of other goods to 7.5%.
Nevertheless, it will leave 25% tariffs on $250 billion on an array of Chinese industrial components and goods used by United States manufacturers.
By its side, China promised to buy around $80 billion of additional U.S. Manufactured goods over the next two years under the phase-one deal conditions, told the source to Reuters. Nevertheless, United States trade experts perceive this promise as unrealistic.
It is the situation in the market.
