A US Treasury official says they have serious concerns about Chinese forex policy and are reviewing the the Senate bill which seeks a WTO case with Chinese concessions.
The rebound in the Chinese economy and continued large accumulation of forex reserves shows China should resume CNY appreciation. China should move to a more market-oriented exchange rate, the official says.
EUR/USD is losing ground ahead of the Fed, in no small part on the uptick in trade tensions. Risk aversion is a theme that will likely accompany trade disputes. EUR/USD trades at 1.3730.