The President of the People’s Republic of China will meet with Donald Trump tomorrow for the first time at a Palm Beach golf course. President Xi Jinping will spend 2 days with the new President in his second meeting with a US President after meeting Obama in 2015. The talks are expected to be fairly uncomfortable as Mr Trump has previously accused the Chinese of deliberately weakening their currency in order to make their exports considerably more attractive.
President Trump seems to have the ability to turn potentially awkward situations with other leaders into positive events. This was shown when he met with Angela Merkel who he was heavily critical of over several comments and tweets. China has an enormous trade deficit with the US in the sense that they sell a lot more than they buy. Mr Trump wants to actively reduce this deficit by either encouraging China to purchase more products or simply tax Chinese imports to the US.
There could well be reports throughout tomorrow afternoon from the meeting and these could cause volatility for the US Dollar. If the talks are very productive then there could even be USD strength, after all if the two largest global economies can work together then there could be a trade boom.
Friday Non-Farm Payrolls
The US Dollars largest data release is out on Friday to end the week with a bang. Non-Farm payrolls reveals the amount of new jobs created outside the agriculture industry and can have a major effect on the market. If the results are better or worse than expected then the market responds in direct fashion with currency movements. This month there is expected to be a reduction of 55,000 jobs compared to last month, but there is still thought to be a high reading of 180,000 new jobs created.