Reports of US-China talks to resume in next 2 weeks - some tariffs to be delayed
Xinhua is reporting that China's Lui He spoke with USTR Lighthizer and Treasury Sec Mnuchin and that there could be fresh talks resuming within the next few weeks. This has sparked an initial reverse in risk sentiment, which is best reflected in the JPY pairs in FX.
However, there is also news from the USTR that some products will be delayed from having tariffs placed on them until mid-December, while other goods will be removed completely on the grounds of health, safety and security issues. This has prompted an even stronger push in the risk related currencies and USD/JPY has raced into the upper 105.00's and is now pushing through the 106.00 level.
USD/CHF is also higher, with a broader easing of the CHF tone helping some of the crosses, though the USD rate is faring the best as we see EUR/USD back down below 1.1200 again as part of the inverse relationship with USD/JPY.
Markets have certainly been awakened by these latest developments, and it seems this could spread into some wider activity in the North American session later on.