China offers assurance that US trade deal won’t hurt Europe – Caixin

Caixin shared comments from China’s Vice Premier Han Zheng that poured cold water on the US President Donald Trump’s projections of $100 billion sales to China.

Key quotes

China’s trade deal with the US won’t hurt Europe and will comply with World Trade Organizations (WTO) rules,

Han made the comment in response to growing concern in Europe that the US-China accord could harm the European companies.

FX implication

Given the likely ambiguous stage of the US-China trade deal despite the signing of the phase-one deal, news like this adds to the market’s current risk aversion. Even so, USD/JPY and AUD/USD register modest changes to 109.88 and 0.6845 by the press time of early Wednesday morning in Asia.