Chinese Comments Boost FX Market | Finance Brokerage

Chinese comments on Friday boosted risk appetite among FX market traders. The dollar slipped a bit, while other currencies moved on various factors.

According to reports, a senior diplomat from China urged the US to compromise. The goal was to develop stable relations between the two economic giants.

However, this week has been full of unclear signals. The success of a preliminary trade deal still hangs on the balance.

As a result, the positive comment from China did not move the markets very much. Currencies still traded within tight ranges.

According to a Commerzbank analyst, there is a case to call the situation a “status quo.”

The dollar index that pits the dollar against other major peers inched down less than 0.1%. This decline, though marginal, broke the basket’s three-day rally.

It also puts the index for its smallest weekly change since the beginning of August.

Chinese President wants the Deal, but will Fight Back

China’s Xi Jinping said that China has a “positive attitude” in terms of the trade talk. However, to get the best Deal out of it, the country would “fight back.”

Xi said that the country is working on a phase one agreement with bases on “mutual respect and equality.”

The US and China have locked horns over trade for more than a year. Trump has accused the Asian country of unfair protectionist policies as well as intellectual property theft.

Since then, the two sides have slapped each other with punitive tariffs and regulations. Such decisions have cost them billions of dollars.

Trump announced on October 11 that the two countries were working to agree on a “phase one” deal. However, progress has stalled. No written text has yet been finalized.

Trump has also claimed that the Chinese have not been stepping up to the level that he wants.