Trump expected to sign Hong Kong bill into law, various trade headlines weighs on risk sentiment
|According to a note from Bloomberg, US President Trump is expected to sign the Hong Kong bill into law, according to someone familiar with the matter.
Meanwhile, the US House approved a bill to bar export of many crowd-control munitions to the Hong Kong police, and sending the measure to Trump for signature or for veto. A bill to regularly review HK's special financial status is now also approved and will be sent to the White House for Trump to veto or sign as well.
Update
Courtesy of CNBC's Beijing Bureau Chief:
- China will double down on attacks of US Congress after House passed legislation supporting HK protesters post Senate bill.
- Trump said China wasn’t “stepping up” the way he wants in trade talks. But in Beijing, the Chinese feel US is the one that needs to make next move with tariff rollback - to show sincerity, make deal “balanced”, give Beijing face.
Earlier notes
Earlier Trump talking at the Apple factory said he thinks China is not stepping up to the plate and says China wants a deal more than he does. He also said, "We're looking at whether Apple should be exempt from China tariffs".
"If I didn't win, right now China would be a bigger economy than the United States. (The US economy was 60% larger than China when he was elected. To close the gap, the US economic drop would have had to be double the Great Depression and twice as fast),"
Trump said. In later trade, he most recently tweeted:
Today I opened a major Apple Manufacturing plant in Texas that will bring high paying jobs back to America. Today Nancy Pelosi closed Congress because she doesn’t care about American Workers!
FX implications
The yen has picked up a fresh bid in early Asia on the number of negative headlines related to the breakdown in US and Chinese relations. AUD/JPY in particular, as a proxy to trade sentiment, is already off by -0.25% at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.