Xi China , China’s President Xi Jinping stated at a virtual SCO meeting on Tuesday. That they should “focus on practical cooperation and accelerate economic recovery.”
Xi China Additional remarks
“There is a need to improve strategic communication and coordination, as well as respect for each other’s core interests and concerns.”
“It is necessary to develop independent foreign policies.”
“China is willing to work with all parties to implement global security initiatives.”
“China is opposed to supply chain decoupling and severance.”
Market movement
However, markets continue to price in a 25-basis point increase at the upcoming FOMC policy meeting on July 25-26. This, in turn, supports rising US Treasury bond rates. Which, together with concerns about a global economic slump, offers some support to the safe-haven Greenback and may limit gains for the risk-averse Kiwi. Aside from that, the Reserve Bank of New Zealand’s (RBNZ) explicit signal that it was finished with its most aggressive hiking cycle since 1999 may help to keep the NZDUSD pair under control and warrants caution before positioning for any meaningful appreciating move in the near term.
Traders may also want to remain on the sidelines in anticipation of this week’s announcements of the June FOMC meeting.
https://voiceoftraders.com/analysis/usdjpy-is-still-under-pressure-inside-a-four-day-trading-range
