|Day's Range||0.142 - 0.142|
|52 Week Range||0.1415 - 0.1500|
Trade tensions are continuing to escalate as China signals it may continue to weaken its currency. China's central bank set the yuan midpoint above seven to the American dollar for the first time in over a decade. Yahoo Finance's Julie Hyman and Adam Shapiro chat with James Camp, managing director of fixed income at Eagle Asset Management, about this move and its effect on the trade war.
Yahoo Finance’s Adam Shapiro, Julie Hyman, and Brian Cheung join Direxion Managing Director & Head of Product Dave Mazza and Invesco Senior Portfolio Manager Alessio de Longis.
Wall Street analysts are weighing in on whether a trade deal between the U.S. and China will happen before the 2020 election. Scott Gamm has more details from the floor of the New York Stock Exchange.
XAU/USD is ready to close positive for the third week in a row. Gold is posting 1.02% gains on the last five days, but the movements are more on a sideways mode above the 1,500 area and contained by the 1,530.
Despite positive AUD-specific data, the Aussie pair was heading south to end the day on a negative note. Fiber kept slipping throughout the day shrugging towards upbeat Eurozone and German Q2 YoY GDP data.
According to experts who watch this event as an indicator, a recession happens, on average, 22 months following the inversion. So, fears about a recession jumped, and risk aversion flooded markets.
After three adverse closings in a row, the Greenback was underway a positive closing today. After touching the 7.0707 mark yesterday, the USD/CNY pair was heading downside on Tuesday.
XAU/USD jumped to trade as high as 1,535 on Tuesday, its highest level since April 2013. But, US CPI is pushing prices down, and it is currently trading at 1,521, 0.66% positive on the day.
Larry Kudlow may be the only thing standing between us and the next leg of a currency war. The president’s chief economic adviser is a “strong dollar” man. View him as a tool of the “Deep State.” Or view him as Sparta’s King Leonidas, holding the pass for civilization.
The executive board of the International Monetary Fund on Friday said policy measures already announced by Beijing should be enough to deal with the hit to the economy from the U.S.-China trade battle, but that additional stimulus could be warranted if rising tensions put economic and financial stability at risk. In a regular assessment, IMF directors continued to call for more exchange-rate flexibility and policy transparency, with some directors also calling for disclosure of FX interventions. The U.S. earlier this week formally labeled China a currency manipulator after Beijing failed to arrest a fall in the yuan that saw the currency trade at more than 7 per dollar. In a July report, also released Friday, IMF staff aid that despite a depreciation in the value of the yuan versus the dollar after August of last year, the currency was broadly stable against a basket of currencies and that estimates "suggest little FX intervention" by the People's Bank of China.
The seeds of the Trump-era trade war between the U.S. and China were planted during the last presidential campaign, when then-candidate Donald Trump said Beijing couldn’t be allowed to continue to “rape our country.”
The Chinese Yuan pair continued to stay sustained within a multi-month uptrend channel. Canadian currency slipped following disappointing Jobs data thereby allowing the Loonie pair to climb fresh heights.
When China’s currency depreciation breached the psychological threshold of 7 yuan to the dollar this week, stock markets both fretted over a replay of the disorderly depreciation in 2015-2016 and feared that the yuan has become a retaliatory tool in Beijing’s trade war arsenal. In fact, the Chinese currency (USDCNY) isn’t likely to experience anything like a free fall in the coming months because worries about the response from EU and Japan will dictate policy makers to show restraint.
And even worse, experts are now asking themselves how U.S. President Donald Trump will answer to China Yuan depreciation. Think twice, a sanguine temperament person who always wants to looks like the winner.
China's central bank set the yuan's midpoint weaker than 7 per U.S. dollar for the second time this week early Friday. The People's Bank of China set the daily reference point at 7.0136 yuan per dollar. That was stronger than analysts had expected, and offered more reassurance for investors that China was not kicking off an all-out currency war. Global stocks tumbled Monday after the yuan crossed the 7 level for the first time since 2008, and the U.S. Treasury Department labeled China a currency manipulator. Stock markets in Japan and Hong Kong , as well as U.S. stock futures were largely unfazed by Friday's move. The PBoC allows the yuan to fluctuate up to 2% higher or lower than the midpoint.
Gold settles slightly lower after the precious commodity, along with silver, rallied to a multiyear high a day ago. However, investors remain on edge over trade relations between the U.S. and China, with that conflict serving as a key longer-term support for a climb in precious metals.
Even today, the sturdy 97.60 resistance handle continued to cap Greenback’s daily gains. ECB mentioned in today’s Economic Bulletin that the US-China trade war would affect the growth of Eurozone.
The data helped stabilize bond yields and, for instance, metal prices such as gold and silver, which are trading in a consolidation pattern.
Led by pharmaceuticals including Novo Nordisk and Merck KGaA , European stocks traded higher on Thursday, with the Stoxx 600 Europe rising 0.8% in early action. U.S. stocks finished off lows on Wednesday, and the markets reacted calmly to the PBOC setting the reference rate on the yuan above 7 for the first time since 2008.
The ongoing trade war is dominating the headlines, and investors are really concerned about global stability and economic health. It is driving traders away from riskier assets and fueling traditional safe haven assets like gold.
The acceleration towards an all-out trade war between the US and China appears to have been averted, at least for the moment, with China’s Central Bank fixing the Yuan at a stronger level than expected. As well US equities were nudged along by comments from Larry Kudlow chief White House economic advisor, said “the reality is we would like to negotiate,” and “things could change with respect to the tariffs.”
The trade war between the United States and China escalated Monday, prompting a shocking downswing of over 750 points on the Dow, and forcing investors to temper their former optimism about a deal.