The meeting between the top two global superpowers has proven positive and looks as if trade talks are going ahead. Donald Trump and Chinese President Jinping have clearly managed to resolve any differences and look set to have a constructive relationship, which many thought could end up in a race to the bottom. China have offered some short term wins to the US by lifting bans on purchasing beef from America, there will also be more access to buying other agricultural products from the United States.
If the US and China do come to a trade agreement then the US Dollar could dramatically increase in strength. At the moment there is a considerable amount of tension between the two powers, but a deal could create enormous wealth. Currently they’re seen as competing with one another, however a deal could be beneficial for both.
“We have made tremendous progress in our relationship with China. The relationship developed by President Xi and myself I think is outstanding.”
– Donald Trump, President of the United States of America
It could be quiet week until Friday
There is not much pivotal data out for the US Dollar until the end of the week when it’s Good Friday. There is expected to be a fairly mixed bag of inflation data and retail sales information. Should there be any movements from the expected results then that could cause major market movement.
Any poor data could have a serious effect as there is an expectation that good data is needed to increase the changes of further interest rate hikes. Therefore, should the data be poor the market strength for the US Dollar could start to diminish and could even dramatically weaken.