U.S. Dollar, CNY Stable After Forex Trading Transaction
Recently, U.S. Dollar and the Chinese yuan continued steadily in the FX market a day after China and the US signed a phase one trade agreement.
The partnership aims at easing conflicts between the two largest economies in the world.
Moreover, the signing of the deal last Wednesday in the US boosted equities markets and offered some stability to currencies.
Meanwhile, U.S. Dollar Index Futures that tracks the greenback versus a basket of other currencies were slightly softer, and it was below 0.02% to 97.30.
However, the index has continued robustly after tumbling at the beginning of the year.
On the other side, the People’s Bank of China (PBOC) set the reference rate for the yuan at 6.8878 today. It was contrary to the 6.8807 last Thursday.
Also, the USD/CNY pair was broadly flat. It was below 0.01% to 6.8759 on Friday morning.
According to numbers issued by the National Bureau of Statistics this Friday morning, China’s economy increased 6.1% all through 2019. It is the lowest rate of development since 1990.
However, the growth rate is lower than the market anticipations of 6.2%. However, it was within the 6% to 6.5% target, the central administration set in early 2019.
From the previous quarter, growth in the fourth quarter was 6% unchanged.
Release of the Monthly Export
Earlier in the week, the Friday data follows the release of monthly export.
Moreover, the import numbers demonstrated exports are escalating in December for the first time in five months and import growth hitting estimates.
In December, exports from China grew 7.6% year on year while imports bounced 16.3%. It is the most significant monthly jump in more than a year.
In some forex trading, the yen continued to weaken versus the greenback. On the flip side, the USD/JPY pair inched up 0.04% to 110.19.
The AUD/USD pair was also down 0.17%, and the NZD/USD pair declined by 0.08%.
Elsewhere, the Chinese yuan is hovering today. It was surging to its six-month highs versus the US dollar in the wake of the announcement of the country’s latest economic growth figures.
Meanwhile, the USD/CNY pair traded at 6.8598, below 0.3%.
On the other side, the US Dollar Index Futures, which tracks the greenback versus a basket of other currencies, was mostly dull at 97.06.
Moreover, the People’s Bank of China set the reference rate for the yuan at 6.8878 Friday. It was very different compared with 6.8807 last Thursday.
Earlier today, China reported that its gross domestic product increased by 6% in the fourth quarter. The rise means that economic growth reduced to 6.1% in 2019.
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