Why One Bank Thinks Trade Truce Will Give China More Leverage

Well, if you want to go by early Asia-Pac FX trading (which is an exceptionally silly thing to do), markets are feeling pretty good about the trade truce. In the earliest of early trade, the Aussie rose, the offshore yuan rallied against the dollar. and the yen was weaker. (Bloomberg) Obviously, these aren't the most reliable ticks to go by, but it was a decent start and seems to underscore the notion that the initial read on what came out of dinner in Argentina is that the agreement mark

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One thought on “Why One Bank Thinks Trade Truce Will Give China More Leverage”

Soybean is a good relief as it was hurting both sides badly. 90 days is just fine as US can unload some of the stocks that are accumulating while south America is currently out of beans to sell until January/February, so US will cover China needs for the period.

Also the Fentanyl matter was a positive development given the 72.000 deaths in 2017. Mexican cartels are still there, but at least a good step in the right direction.

Squeeze higher due to gamma, plus bit better than expected news, markets will likely rise this week. Bets in London give spx opening +1%