In hopes of improving trade talks with China, Treasury Secretary Steven Mnuchin reportedly proposed the idea of lifting some or all the tariffs. The Wall Street Journal noted that the President has made clear he wants a deal – and is pressing Mr. Lighthizer to deliver one. US Trade Representative Robert Lighthizer, a longtime hard-liner on China, is running point on trade talks and if the US eases off on China, that could be very positive for risk appetite.
The commodity currencies all surged following the breaking news. AUD/USD climbed over 40 pips, while the USD/CAD fell 45 pips.
Dow Jones Industrial also broke out above 24,200 and reached a high at 24,449, before pulling back towards 24,310.
Shortly after (about 18 minutes) the spike, a Treasury Official denied that any China tariff recommendations were made.