US Sec. of State Pompeo: Hong Kong will become just another communist-run city

Early Friday morning in Asia, US Secretary of State Mike Pompeo used twitter to register his angst against the Chinese Communist Party’s (CCP) Hong Kong Security Law.

The tweet

FX implications

Although China hasn’t yet strongly responded to the US attacks on the Hong Kong security law, such a repeated criticism risks pushing the dragon nation towards hard stand against the world’s largest economy. This would exert additional downside pressure on the market’s risk-tone sentiment that recently weighed down by the coronavirus (COVID-19) concerns. That said, Wall Street benchmark lost some ground during the latest hours while the US 10-year Treasury yields also recede to 0.669% by the end of Thursday.