The US dollar is struggling to find direction against multiple currency rivals at the end of the trading week. The greenback is trading sideways after new retail sales, manufacturing, and trade data showed a mixed portrait of the national economy last month.
The Japanese yen is strengthening against multiple currency pairs midweek, driven by better-than-expected banking lending and manufacturing prices. Will this be enough to quash concerns about a possible recession? After last week’s surprise decline in machinery orders, it is unclear where the Japanese economy is heading.
The Chinese yuan is rebounding against multiple currency pairs on Tuesday, following an onslaught of disappointing economic data. The biggest driver of the yuan’s gains is President Donald Trump’s upcoming speech at the Economic Club of New York that is expected to announce delays to tariffs on automobiles, as well as hints on the current state of US-China trade negotiations.
The Great Britain pound was extremely volatile today, sinking intraday but bouncing later. Currently, the sterling is trading above the opening level. The main reason for the currency’s volatile moves was uncertainty over the Brexit, though today’s mostly underwhelming macroeconomic data also had its negative impact on the pound.
The Chinese yuan is struggling against its major currency competitors on Tuesday as optimism over the first phase in the US-China trade deal diminishes. After initial celebration in financial markets, investors now have some consternation until a formal and written agreement is signed. The yuan was greater impacted by disappointing economic data.
The Japanese yen fell against other major currencies today as the mood on markets was generally optimistic, giving little incentive for traders to buy safer currencies. Domestic macroeconomic data was not helping the yen either, being disappointing for the most part.
The Sterling pound today fell to new 5-week lows as talks between Britain and the EU appeared to have hit a wall given today’s events. The GBP/USD currency pair today fell after reports that a phone call between Boris Johnson and the German Chancellor had made a Brexit deal almost impossible.
The US dollar is strengthening on Tuesday after the US government reported that wholesale prices slumped last month, defying market forecasts. Investors are also waiting for the Federal Reserve minutes from its September policy meeting, as well as bracing for this week’s tumultuous renewed US-China trade negotiations in Washington.
The Japanese yen did not demonstrate a clear trend today, falling versus the US dollar and the Swiss franc, gaining on the Great Britain pound, and staying flat versus the euro. Monetary policy minutes of Japan’s central bank reiterated the possibility of additional monetary easing. Domestic macroeconomic data was mixed.
The British pound today fell against the US dollar following the release of the disappointing UK inflation data for August early in the UK session. The GBP/USD currency fell from 8-week highs reached yesterday as investors sold the pound ahead of the much-anticipated FOMC announcement.
