Citing an unnamed source, the South China Morning Post (SCMP) reports that China is said to close the US consulate in Chengdu, in the face of the "retaliation over Houston".
Key quotes
China is moving to close the US consulate in the southwestern city of Chengdu in retaliation for the forced closure of the Chinese diplomatic facility in Houston on Tuesday.
The strategically important diplomatic outpost will be closed by Chinese authorities.
Washington maintains five consulates on the Chinese mainland – in Guangzhou, Shanghai, Shenyang, Chengdu and Wuhan – as well as a consulate general for Hong Kong and Macau.
This will likely escalate the ongoing tensions between the two countries. China vowed retaliation after the US closed its Houston consulate on Tuesday, to “protect Americans’ intellectual property and private information”.
Market reaction
The tepid market mood persists, with little reaction to the above reports. S&P 500 futures trade modestly flat while AUD/USD struggles to regain 0.7150. The US dollar extends its consolidative mode near multi-month troughs.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades with mild gains near 1.0800, awaits US NFP
EUR/USD is holding ground near 1.0800 in European trading hours on Friday. The paint draws support from a broad US Dollar pullback, as traders resort to position adjustments ahead of the all-important US Nonfarm Payrolls data release.
GBP/USD stays defensive below 1.2750 amid risk-off mood, ahead of NFP
GBP/USD stays on the back foot below 1.2850 in the European session on Friday. Sellers take a breather in the aftermath of the BoE interest-rate cut and amid renewed US Dollar weakness. Risk-aversion prevails, capping any upside in the pair ahead of the US jobs data.
Gold price jumps above $2,460 as US yields decline ahead of US NFP
Gold price climbs above $2,460 as the US bond yields and the US Dollar face pressure ahead of the US NFP for July. The Fed appears comfortable with market speculation for interest rate cuts in September.
Bitcoin bounces off from the ascending trendline
Bitcoin and Ethereum have retested their key support levels, with a break below these levels potentially signaling a bearish trend ahead. At the same time, Ripple shows resilience and could rally in the coming days after testing its key support level.
US Nonfarm Payrolls Forecast: Employment expected to grow by 175K in July
Attention now turns to the high-impact Nonfarm Payrolls data for July, slated for release on Friday at 12:30 GMT, as markets continue to assess this week’s US Federal Reserve policy decision.