US Treasury secretary, Steven Mnuchin, speaks to CNBC
- Hopes that can seal a deal with China
- Won't speculate on timing of a deal
This reminds me of the whole Brexit agreement where lawmakers were constantly touting that 95% of a deal is complete. And look where we are now on that.
In essence, this here is no different. Sure, both sides may agree on many other issues that amount to 90% of an agreement but that 10% where they cannot reach a compromise on (issues such as exchange rate, IP protection) outweighs everything else which is basically not important in the grand scheme of a deal.
Mnuchin's comments is getting wider airing now and is prompting a move higher in equities and bond yields. USD/JPY has moved up to a session high of 107.67 from 107.40 levels earlier. As mentioned, this sounds good on paper but I'm not buying into the optimism.
