The risk mood improves as China says that they are still in touch with the US and discussing about September talks
That has seen Treasury yields pare earlier declines across the curve with US futures also climbing to flat levels on the day now. In turn, that has pushed USD/JPY to session highs around 106.17 amid the turnaround in sentiment.
However, the key question now is that can the turnaround in the risk mood seen currently stay the course today?
I'm still leaning towards the skeptical side. I mean the Chinese remarks aren't anything too new or overwhelmingly positive in my view.
Actions speak louder than words and with both sides fighting tit-for-tat with tariffs, it still suggests that any compromise on trade remains far apart at this point in time.
Negotiations are great but let's wait and see who will be participating in the negotiations and if it actually leads to anything. As mentioned many times in the past, we've been down this road before. The same headlines, the same reaction. Where's that trade deal again?
