By Vincent Mivelaz
US treasury secretary Mnuchin's talks with Chinese premier Liu He on Friday confirmed a rather rough start for both nations who are somehow trying to endeavour to achieve a win-win agreement, a relatively less likely scenario as long as both nations aren't getting prepared for a 'give and take' scheme.
Accordingly, Chinese first quarter current account balance deficit above USD 28 billion (prior: USD + 62 billion), a historical low, strongly reflects the fact that both nations must count on much smaller surplus in the near future as long as bilateral tensions are not restored. The final accord on China’s current account surplus over the US could have important repercussion on the CNY, which would be much weaker and volatile if its trade surplus is expected to shrink.
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments.