Rand firms as prospect of US-China trade deal buoys sentiment

The rand was marginally firmer against major global currencies on Thursday morning, as US-Iran tension eased.

There has been relief in the market after US President Donald Trump and Iranian leaders signalled their willingness to end hostilities.

With the tension in the Middle East easing, investor attention returns to the pending US-China phase one trade deal.

In December, US President Donald Trump said the phase one trade deal would be signed on January 15 in Washington, with “high-level representatives of China” present. Trump also said  he would travel to Beijing at some point to begin talks on the next phase.

On Thursday, China’s commerce ministry confirmed that China’s vice-premier, Liu He, who is also head of the country’s negotiation team in China-US trade talks, would sign a phase one deal in Washington next week.

A spokesperson for China’s commerce ministry told reporters at a regular briefing said that Liu will visit Washington, and that negotiating teams from both sides remain in close communication on particular details of the signing of the phase one trade deal.