Markets Waiting US Response To The Hong Kong Security Bill

5/28/2020 06:23:00 PM
The risky tone of the market has mixed into today’s European session; However, due to the impending escalation of US / China tensions, the risks are still strongly downside.

As expected, the Chinese parliament voted in favor of approving the Hong Kong National Security Bill, and U.S. Secretary of State Mike Pompeo said: "Today I have informed Congress that Hong Kong is no longer autonomous from China." Hong Kong is now at risk of losing its privileged status in the United States, as well as the United States will impose sanctions on Chinese officials and agencies, according to sources.

China's Global Times reported that China could retaliate strongly against US action against Hong Kong, and the South China Morning Post reported that Beijing's retaliation would depend on US action.

Regarding the FX complex, the majors remain mixed as many participants await the US' response to China's Hong Kong security bill with President Trump earlier this week stating the US would take action before the end of the week.
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