The United States Under Economic Stress
Markets doubt a Phase One signing with the United States, pushing down the US Dollar Index by 0.4% at 97.083. Reports say China blamed the US President Donald Trump, afraid that he could back out of the deal.
Greenback was under pressure against the yen when Chile withdrew from being the APEC Summit’s host this year. The two countries are set to sign their Phase One deal in Santiago, the country’s capital city.
Asia’s chief market strategist Tai Hui said the summit should not push the United States and China out of a deal. They were both willing to reach an agreement before the next tariff hike on Chinese exports.
Amid the mixed reports, the dollar slumped against yuan by 0.14% at 7.0443. Some claim this is also a result of the Federal Reserve’s third rate cut this year.
At the same time, the USD/JPY pair dived 0.51% at 108.28. The Bank of Japan’s decision to maintain its interest rates helped boost their yen.
The USD/CHF went down 0.2% at 0.9872, while the GBP/USD pair went up 0.48% at 1.2963. Britain will keep its place in the European Union as the House of Commons set a “Brexit Flextension.”
Chile Cancels 2 in 1 Santiago Summits
The Asia-Pacific Economic Cooperation Summit is not the only canceled event in Santiago this year. The UN’s annual climate change conference COP25 recently announced its search for an alternative host.
Protests against the Chilean government’s neoliberal policies and the high cost of living began in mid-October.
The number of protestors in the city increased to a million last Friday. A thousand more swarmed the city capital on Tuesday, leaving a trail of destroyed properties.
The supposed APEC meeting will focus on the digital economy, regional connectivity, and women’s roles in economic growth. The United States and China decided on having a public signing for their first trade agreement in the event.
Meanwhile, the COP25 claims to focus on nine interdependent tracks between 19 countries in the United Nations.
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