Today, the market is abuzz with a new Brexit-related development, notably UK Prime Minister Boris Johnson’s attempt to sign a trade agreement with the United States. US President Donald Trump complained in an interview that the conditions set out in Johnson’s Brexit withdrawal agreement will complicate the process of reaching a deal with the US because they impose limits. As usual, the US President was vague on the details.
The Opposition leader in the UK, Jeremy Corbyn, accused Boris Johnson of trying to divert people’s attention away from domestic issues by dangling a sub-par deal with the US before the public.
Meanwhile, the United States continues to struggle in securing a trade deal with China. Despite a month of renewed negotiations, the two countries don’t seem any closer to a deal, especially considering that their summit in Chile got cancelled. China doubts that Trump will stay in office long enough to justify any major reforms, which has made progress in the talks difficult.
The US dollar has weakened due to the prospect of the trade war with China continuing. The Federal Reserve stated that another rate cut is unlikely in the near future. However, if the conflict continues and fundamentals waver, the dollar may need a rate decrease in early 2020 for support.
