Officials: No 'Phase Two' US-China deal on The horizon – RTRS

Reuters reports that an "ambitious “phase two” trade deal between the United States and China is looking less likely as the two countries struggle to strike a preliminary “phase one” agreement, according to U.S. and Beijing officials, lawmakers and trade experts."

Fx implications:

The news is antagonistic to markets that are trying to gain some traction on the bid following a series of more promising headlines. this highlights that regardless of a phase one deal, there is a very long and bumpy road ahead for investors. so far in trade today, the Yen has been positive, gold down and risk sentiment leaning with a bullish bias. However, headlines such as this will likely prevent a follow-through of the same. 

"The United States needs better coordination with its allies to pressure China to make urgently needed structural changes, including ending the forced transfer of technology and better intellectual property protections, trade experts and former officials say."