Ain't no drama like the White House drama
- Peter Navarro declares trade deal with China is over
- More on Navarro announcing the trade deal with China is over
- Navarro is now walking back his 'its over' comments!
- Trump economic adviser Kudlow confirms the trade deal with China is not over
- Trump weighs in to clear things up: "China Trade Deal is fully intact"
As we look towards the session ahead, the rather modest changes in the major currencies space belies the volatile moves seen earlier today after White House trade adviser Navarro called the US-China trade relationship "over" before walking that back.
His defense was that his comment "was taken out of context". In any case, however lame that excuse is, the market is taking that as a nod that things are still "alright".
Whether or not that was a slip of the tongue, it pretty much just reaffirms what we already know about the US-China trade relationship at this point in time.
Both sides will continue to keep appearances up but they both know that neither will keep their promise and deliver on the commitments drawn up by the Phase One agreement.
The market very much knows that too surely. But as long as the facade stays in place, that is enough to keep dip buyers happy and the market playing along to the act.
It is pretty much like a married couple (US and China) that has deep-rooted problems and is headed for an inevitable divorce (breakdown in the trade deal), but chooses to put on a show to keep their kid (the market) happy. No offense to anyone out there.
