Further comments by the Chinese foreign ministry
The abrupt demand by the US for China to close the consulate within 72 hours comes after local media reports in Houston that documents were being burned in a courtyard at the consulate last night. There aren't much other details beyond that.
I think this is a convenient headline for risk trades to correct a little but in the bigger picture of trading today, it should be an accompanying headline (unlikely to be a major one unless more details surface) to the broader undertones that we will see later in US trading.
US futures are trading a touch lower but the losses aren't too material for now. But if the softer risk mood does gather pace, watch out for a drop in EUR/USD under 1.1500 as that could lead to wider gains in dollar pairs in the sessions ahead.
