The Chinese delegation is going home
Risk trades have been upended by the news that China's trade delegation is leaving the United States earlier than planned.
The outline for the trip was a visit to Montana for agricultural talks but that part of the trip has been scratched.
Trump may have hinted at the problem in a press conference earlier.
"I am not looking for a partial deal. I am looking for a complete deal, "Trump said during a joint news conference with Australian Prime Minister Scott Morrison. He added that it would not be enough for China to buy more agricultural products.
US officials had dangled the possibility of an interim deal over the past three weeks while a bigger truce was negotiated. Now it seems as though that's off the table, or that there was something in a broader deal (likely on IP), that China couldn't swallow.
The move so far has still been fairly modest with USD/JPY down about 30 pips but I would be wary of holding risk trades into the weekend and I expect more pain from here.
In theory, they could have cancelled the trip to Montana because a bigger trade deal is close but that's a leap.
An official on CNBC said the plan was put together yesterday, but the plan was cancelled this morning.
