Comments from the bank on intensification of the dispute still to come and how to trade it in forex
Further US-China trade escalation looks likely
- We believe there is a 60% chance that the US will impose tariffs on most or all of the $260+bn of imports from China that are not covered by the tariffs announced to date
- While further negotiations between US and Chinese officials are likely, we believe additional tariffs remain the most likely outcome.
- Long JPY/KRW is our preferred hedge for China trade risk
Earlier today I posted this on US / China relations:
