020 7898 0500Just when it looks as if the US and China might actually secure a breakthrough in trade negotiations, Donald Trump has to
come along and spoil it. On Thursday, the president was asked whether he would meet the Chinese leader, to which the
former reality TV star said “Not yet.” Then, asked whether he would meet his Chinese counterpart before the 2 March
deadline, Trump said “No.”
This was not well received by investors and markets around the world, as it now looks as if US tariffs on Chinese goods
will increase to 25% from 10%. China will then almost certainly retaliate, the trade war will ramp up again and all of us
will be adversely affected in some way. Still, according to Trump, trade wars are good and easy to win.
As with the eurozone, it is a quiet start to the week for the US, but on Wednesday we will see the inflation rate for
January. It is expected to dip to 2.1% from 2.2% the previous month. On Thursday, we will see retail sales figures from
December and initial jobless claims up to 9 February 2019.
Friday is a busy end to the week, with the preliminary reading of the University of Michigan’s consumer sentiment. We will
also see manufacturing and industrial production figures for January.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business
trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
