The Chinese yuan is tumbling on Tuesday after President Donald Trump told reporters that a trade agreement with China can wait. The remarks offset positive manufacturing data that showed the industry expanded for the first time in seven months. The yuan remains firmly entrenched in the 7 territory against the US dollar after appreciating on hopes of a trade agreement.
The euro today appeared to cool off against the US dollar following yesterday’s massive rally that saw the EUR/USD currency pair breach the 1.1080 level as the greenback fell. The currency pair today traded sideways alternating between gains and losses amid a lack of significant releases from the European dockets.
The Brazilian real is falling against multiple currency rivals as President Donald Trump threatened to restore tariffs on Brazil and Argentina goods, accusing the two countries of devaluing their currencies. But is this really about the two markets becoming go-to sources for China’s soybean needs? The Brazilian leadership attempted to quash concerns, noting that it plans to speak with the US administration.
The euro today fell against a much stronger US dollar amid a lack of any potent fundamental triggers to extend the single currency’s gains from yesterday. The EUR/USD currency pair fell despite the release of mixed German ZEW survey data in the early European session and kept dropping for the rest of the day.
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 Chinese yuan has climbed above the key 7 threshold against its US peer for the first time in three months, driven by hopes that the US and China are on the cusp of agreeing to the first phase of a comprehensive trade deal. Improving trade data and a better-than-expected purchasing managers’ index (PMI) are also giving the yuan a boost.
The Chinese yuan is rallying on Tuesday as the world’s two largest economies appear closer to signing the first phase of their comprehensive trade agreement. The currency was further strengthened on positive factory activity data amid the ongoing global trade hiccups. Could the yuan climb above the seven threshold as Beijing attempts to reverse the economy’s downward trend?
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 euro today cooled off slightly after posting gains against the US dollar for the past three days as investors digested the impact of Friday’s US-China handshake deal. The EUR/USD currency pair fell to its daily lows after the release of weak German wholesale prices data before rallying higher shortly afterwards.
The US dollar is rising at the end of the trading week, driven by investors witnessing progress in the latest principal-level US-China trade negotiations. Markets do not expect that a comprehensive trade agreement, but investors think that both sides are open to a mini-deal that would pause the trade war. This would provide markets with some relief and certainty entering into 2020.
