Signs of a thaw in US-China talks spark dramatic market moves
US dollar surges
The US dollar is ripping higher against the yen on coordinated statements from China and the US on more talks and tariff delays.
A phone call is scheduled for two weeks from now and there is suddenly hope that a deal is possible. The S&P 500 is up 37 points after rising nearly 50 points. USD/JPY has jumped to 106.51 from 105.25.
The market is sensing fewer Fed cuts if there is a deal. By the same token, the Fed might decide to wait-and-see in September because talks are scheduled. It also shows that Trump doesn't want to hurt equity markets.