President Donald Trump today continued his tour of East Asia by visiting China hoping to firm up trade talks and increase business between the two nations. President Trump, following his previous talks with China has seen trade between the two nations increase by 13.7 percent year on year taking the volume of trade to over $400bn. This will have a positive affect on the US Dollar over time as there should be an increase in sales and then tax, which will help to boost the economy.
Donald Trump will also use this opportunity to discuss the North Korean situation with President Xi Jinping, who has toughened his stance on North Korea. President Trump had previously pushed for China to cut all trade ties with North Korea, to essentially suck the life blood out of funding for their nuclear plans. After pressure from the US President, this finally happened and China have stopped helping North Korea with oil exports.
The talks could have an effect on the markets if anything surprising comes from them. But more than likely it will be positive with further doors being opened to help further the trade agreement between the two nations. Trump and Jinping, despite having very different methods for business have a mutual respect and appear to get along. Tomorrow could be a interesting day when they deliver a joint press conference.
US Data this week
There is a fairly quiet end to the week for US data, other than the Baker Hughes Oil Rig Count. This is normally a fairly calm release, however, with the price of oil on the charge a reduction in the number of rigs could indicate that the number of barrels being produced will fall. This in turn could help to keep driving the price up, with $70 a barrel now looking like a real possibility, which could create a positive movement for the US Dollar.