Greer: We have a constructive path forward to have a positive conversation with China

• This agreement is about reciprocal tariffs, which are now at 10% each
• We ended up with a result that is very good for the US and China
• There was no discussion on currency (Bessent)
• It is the first time that the Chinese understood the US’ position on fentanyl (Bessent)
• We are leaving with a very good mechanism to avoid the kind of escalation we saw in the past weeks (Bessent)

The dollar and risk trades are continuing to ramp higher on the headlines here as both Bessent and Greer are painting a very optimistic picture of what took place over the weekend and how things might pan out moving forward. USD/JPY is now up 1.3% to 147.20 while S&P 500 futures are nearing 3% gains on the day now.

This article was written by Justin Low at www.forexlive.com.