Trump says tariffs would be the `ultimate punishment' on China

Ross J Burland FXStreet

US President Donald Trump criticizes China, suggesting there was a coverup as the virus began and has said in recent trade that there is a strong report coming on how coronavirus developed in China.

Key comments

Trump says tariffs would be `ultimate punishment' on China.
Says if China does not buy US good, US will end the trade deal.

The statements follow prior news from this weekend and amid new reports that US intelligence believed that the Chinese government concealed the severity of COVID-19 from the international community in early January.

Market implications

Risk-off. We have seen the Yuan fall in trade today to the lowest level in six weeks. AUD has followed in kind and AUD/JPY is a compelling pair as the FX market's risk barometer:

Chart of the week: AUD/JPY looking ripe for a short

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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