China Willing To Cooperate
In a sign that tensions between the US and China might finally start to cool, the country’s premier said last night that China is willing to manage its differences with the United States. Speaking at the National Committee’s annual gala, a Chinese ambassador read aloud a letter from Xi Jinping which said: “Following the principles of mutual respect, peaceful coexistence and win-win cooperation, China stands ready to work with the United States to enhance exchanges and cooperation across the board.”
The letter went on to say: “Right now, China-U.S. relations are at a critical historical juncture… Both countries will gain from cooperation and lose from confrontation…“Cooperation is the only right choice.”
Biden - Xi Meeting Due
News of the letter comes ahead of a hotly anticipated meeting between Biden and Xi. Although no formal date has been set, many news sources are reporting that the virtual meeting is expected to come as early as next week. On the back of the tense, volatile relationship between the US and China over the course of Trump’s term as president, many are hopeful that Biden will be able to mend the bridges burned between the two leading economies. However, Biden has been clear from the outset that he will not pander to China and has already come into conflict with Xi over China’s position on Taiwan and Australia as well as human rights abuses of the Uyghur people.
While these comments from Xi have been welcomed, many critics point out that the language used in the statement is virtually unchanged from the same comments made during the 2017 gala dinner when Xi vowed to work with Trump.
China Under Pressure
China has come under increasing global pressure recently over the human rights abuses of the Uyghur people, its handling of the COVID outbreak (as well as its alleged role in the outbreak itself) and more recently its approach to carbon emissions handling. With this in mind, the upcoming meeting between Xi and Biden will be closely watched with many eager to see if a new course is laid or the two nations are simply going re-tread the same ground once more.
Technical Views
USDCNH
USDCNH continues to grind lower within the bear channel which has framed the decent over recent months. Price has recently broken below the 6.4018 level and, while below here, the focus is on a test of the 6.35954 level next. This is a major technical level and a break here would likely encourage fresh downside momentum, targeting 6.3246 next.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.