Forex News: Markets Doubt Trump, Yen Gains
Forex markets boosted up yen’s power as they turned skeptical of POTUS Donald Trump’s decision to delay tariffs on China.
Meanwhile, the yuan crept lower against the buck before the release of the industrial output and retail sales data.
Last Tuesday, traders’ risk-off trades got some support from the temporary reprieve in the trade war. On the other hand, analysts cautioned the optimism might be dwindling fast.
That’s quite possible, seeing that the world doesn’t see any solid resolution to the trade row yet. The US-China trade war has shaken the global economy and pushed various countries’ central banks to make drastic policy decisions.
In Hong Kong, the increasingly violent clashes between the police and protesters continue. Britain is still suffering from Brexit woes, and the Middle East is still brimming with suppressed tensions.
Forex Markets Figures, Other Forex News
For figures, the buck lost 0.27% to 106.47 yen. The Aussie also dropped, closing 0.3% to 72.33 yen. The kiwi did the same, falling 0.2% to 72.39 yen.
The buck strengthened against the yuan, though, rising 0.2%. The US dollar index, which tracks the dollar against other peers, didn’t move much. It was at 97.783 after rising 0.4% on Tuesday.
The euro also barely moved at $1.1148.
US President Donald Trump decided to hold off new tariffs on additional Chinese products. That means no additional duties on cellphones and laptops and other goods.
Trump probably hopes to cushion the tariffs’ impact on US holiday sales.
In Asia, Hong Kong’s airport operations got rolling on Wednesday. The managements rescheduled flights that the street clashes disrupted, while crisis continues to rage in the city.
Later in the day, forex news outlets will keep close tabs on the Chinese economic data. Such information can provide traders clues over how the trade war affected the Chinese economy.
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