China’s Vice Premier Liu He: Correct choice for US to remove China from currency manipulator list

China’s Vice Premier Liu He crossed wires during the early Thursday morning in Asia, from Washington where he signed a phase-one trade deal with the US. The key Chinese diplomat said the correct choice for the US to remove China from the currency manipulator list.

Key quotes

Correct choice for US to remove China from currency manipulator list.

Will use results of phase-one deal to prove our negotiations are working to improve economy.

FX implications

News like this generally has a little market impact considering the recently signed phase-one deal and still time for phase-two negotiations. Even so, the underlying tone seems to be positive and can help improve the market’s risk-tone. That said, USD/JPY and gold both remains modestly changed around 109.90 and $1,556 after the release.