The Chinese yuan is weakening against multiple currency rivals at the end of the trading week. The yuan’s slide is being driven by another escalation in the ongoing US-China trade spat. Expectations of bearish industrial profits and manufacturing data have also contributed to the currency’s latest dip.
The US dollar is mixed at the end of the trading week as a new lower-than-expected July jobs report highlighted how robust the national economy is as a diverse array of industries enjoyed gains and more people entered the workforce. But the greenback contended with renewed trade tensions between the US and China, which sent leading stock indexes into negative territory in the early part of the trading session.
The Chinese yuan is weakening against several major currency rivals to kick off the trading week, driven by investors not expecting much to come out of the renewed US-China trade negotiations this week. Traders’ hopes were dashed after one prominent White House official conceded he “wouldn’t expect any grand deal” as the world’s two largest economies hold talks.
The British pound today fell against the US dollar following the release of weak UK manufacturing data by Markit Economics failing to capitalize on Friday’s bullish attempt. The GBP/USD currency pair was under pressure from the revitalized greenback following the pause in trade hostilities announced by the US and China over the weekend.
The main theme this week was the Group of Twenty summit, or more specifically the meeting of the US and China leaders on the sidelines of the summit. The US dollar ended the week either flat or a little higher versus other majors as traders were reluctant to risk ahead of a major event. Yet it seems they were optimistic enough for riskier commodity currencies to become clear winners this week despite the threat of interest rate cuts from […]
The US dollar ended the trading week flat against a basket of currencies as an influx of economic data came out. While spending and inflation matched market expectations, consumer sentiment was a lot lower than the median estimates. With the first half of 2019 in the history books, the market now anticipates the greenback to either weaken or trade sideways in the second half.
The euro today rallied higher against the US dollar following the release of upbeat German and eurozone macro data in the early European session. The EUR/USD currency pair later fell from its highs as investor sentiment shifted, but rallied briefly on the weak US macro releases before falling again.
The Chinese yuan is strengthening against several major currencies on Tuesday, supported by solid housing prices and retail sales in May. Although industrial output and fixed asset investment figures came in lower than expected, they were still commendable at a time when the world’s second-largest economy is engaged in a bitter trade war with the US.
The Chinese yuan is mixed midweek on poor economic data. But the biggest development for the yuan is that it is nearing the 7 mark against the US dollar. The federal government has hinted that it will take action to prevent the yuan from reaching that threshold. The last time the yuan crossed 7 was in December 2016.
The US dollar is trading sideways against several major currencies, suggesting that investors are waiting to see the fallout from an announcement that the White House is raising tariffs on $200 billion on Chinese imports by the end of the week. With data light on the calendar in the coming days, traders are focused primarily on geopolitical events surrounding the buck.
