Obama’s trade speech is hitting the wires. He says he wants US companies to have a level playing field on trade that give workers a “fair shake”. He says China moving to a market-oriented exchange rate would make an essential contribution to the global economy.
Oh, and there’s going to be a task force!
All that is well and good, but the question is what will he do level the playing field? His administration has shown willingness to pursue mildly protectionist tendencies. A move toward greater protectionism is a major risk going forward, especially if China retaliates via the financial markets.
US equities are rebounding, now down 0.2% i the day, helping give “risk” trades a lift. EUR/USD has bounded 30 pips to the low 1.3660s.
