In the wake of North Korea firing missiles into the sea, President Trump has tweeted a rather sarcastic “So much for China working with us”. President Trump shared a message that trade between North Korea and China has increased by 40% in the first quarter.
Trade between China and North Korea grew almost 40% in the first quarter. So much for China working with us – but we had to give it a try!
— Donald J. Trump (@realDonaldTrump) July 5, 2017
Previously, Chinese President Xi Jingping had hoped that he could get a better trade deal from the US if they worked with North Korea. The US have been very vocal with their concerns about North Korea, however there has been little change from the dictator state. China is there only ally and Trump saw that as a route to gain some control, however it seems that plan has failed.
The Federal Open Market Committee meeting minutes will be released at around 7pm which has the potential to create major volatility. The release will provide an insight into the thoughts of the members who vote for changes to the interest rate in America. If there is hope of a future rate hike as many believe, then there could be a strengthening of the US Dollar.
US Data to end the week
The next two days will see a number of releases for the US. On Thursday there will be PMI data which provides an insight into business confidence. On Friday there will be the biggest release in the week which is the Non-farm Payrolls and the Unemployment rate. Both can cause major movements if there are any surprised releases.
Finally there will be a meeting between Trump and President Putin, this will be contentious simply because there is an investigation into Russian ties to the US Election. There will be updates across the afternoon no doubt and if the meeting is a success it could be positive for the US Dollar.