Tension between China and the United States
It would appear that the relatively positive relations between the world’s two largest economies are gradually deteriorating. A few weeks ago, President-Elect Trump upset the balance by agreeing to talk directly with Taiwan. Meanwhile, in the past few hours, China has seized a U.S. surveillance drone in international waters off the Philippines. Chinese-American relations will no doubt be one of the most crucial areas to watch in 2017.
On foreign exchange markets, the greenback is down slightly against its peers this morning. Investors are making the most of the recent strength of the USD to take profits before the end of the year.
No major indicators are on the calendar this morning, although a two-day Bank of Japan meeting will get underway that some rumours may trickle out of. Otherwise, Federal Reserve Chair Janet Yellen will be speaking at 1:30 at the University of Baltimore.
