The Chinese yuan is weakening against a basket of currencies to start the trading week, driven by new data that shows exports posted a double-digit decline last month. The ongoing US-China trade discussions lingered in the background as both sides negotiate over the yuan and exchange rates.
The British pound today rallied slightly against the US dollar amid investor hopes that the UK government would postpone Brexit to allow time for further negotiations. The pound later fell in the early American session as news headlines indicated that the British Prime Minister Theresa May was keen on leaving the EU within the current deadline.
The euro today was on a downtrend against the US dollar from the early Asian session as investors worried about the introduction of new car tariffs by the US. The pair spiked higher briefly in the early European session, but quickly gave up its gains following the release of weak macro data from across the eurozone.
The Chinese yuan is gaining against major currency rivals on Monday as it is being supported by US-China trade talk momentum and better-than-expected January trade data. The yuan’s ascent was capped on disappointing auto sales figures and future industry projections.
The US dollar gained momentum on Friday, extending its gains over the past week. The greenback edged higher on mixed economic reports were released and breaking news that China is offering a $1 trillion-a-year olive branch on imports that could end the trade war almost immediately.
The Japanese yen fell against majority of its most-traded peers today due to risk appetite prevailing on markets. Disappointing inflation report was not helping the currency either.
The Chinese yuan is continuing to post significant gains in the aftermath of the US-China trade truce. With trade hostilities suspended for 90 days, the yuan is looking to pare its steep losses, and some analysts believe the currency could become a global heavyweight in the years to come. Now if only the economy would rally as much as the yuan.
The euro today rallied higher against the US dollar during the Asian session mainly due to the risk-on sentiment following the US-China trade truce. The euro later declined in the early European session as market sentiment became neutral and the EUR/USD currency pair moved into negative territory.
The euro today was buffeted by a deluge of negative news headlines that soured investor sentiment towards the single currency and other riskier currencies. The news headlines included China’s denial of any progress in the trade war talks as well as the Italian budget standoff, which contributed to the EUR/USD currency pair’s massive decline.
The Swiss franc is weakening against the greenback on Thursday after the central bank warned that the trade war could rock the currency. A central bank official also encouraged investors to hold tight because a tighter monetary policy is still far away from being realized. That said, officials believe the franc remains highly valued in the global financial markets.
