Trade war fears intensified in Asia this Friday, which eventually turned into a currency-war, with the Yuan accelerating its declines versus its American peer. However, the Antipodeans staged a solid comeback towards Asia closing, as the US dollar stalled its pullback from the Trump-led selloff. PBOC devalues Yuan by most since June 2016A weaker Yuan is China's answer to Trump's trade war. USD/CNY hits fresh one-year high above 6.80 as trade war turns into currency warThe People's Bank of China (PBOC) is increasingly favoring a weaker currency as it would help the economy absorb shocks from trade war with the US. Meanwhile, the US docket remains data-empty and hence, the broader market sentiment amid ongoing trade war concerns will continue to drive the fx markets.
Forex Today: Antipodeans sold-off into weak data, Ifo, EU-US trade meet eyed
The Kiwi fell back below the 0.68 handle after the New Zealand trade report surprised markets to the downside. In the NA session, the US new home sales and EIA crude oil stockpiles data will be reported. However, the main event risk for today remains the trade talks between the European Commission President Juncker and the US President Trump due later on Wednesday. EUR/USD sold-off at 1.1700 ahead of Ifo, Juncker-Trump trade talksEUR/USD faced rejection once again just below the 1.17 handle in the Asian, as the bulls remain wary heading into the German Ifo business surveys and EU-US trade talks due later today. After last week's 12-month high in the dollar index, you might wonder who or what cut short the rally.
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