Forex Marketz Daily Forex News – Fully Markets Update
Asian Forex currencies are facing volatility during the Asian and Pacific Rim trade session on Tuesday. The Chinese yuan pull back from an all-time low price point against the U.S. dollar set on Monday. China has taken some steps to keep the yuan from weakening further. This drop in the yuan prompted the United States to designate China as a currency manipulator.
The USD/JPY exchange rate was up as the yen surrendered gains. The yen was weaker, in general, against most of its Forex trade partners.
The dollar index, which measures the greenback against six other currencies, was also under pressure during the Asian trade session. Traders are worried as the trade war between the U.S. and China has escalated into uncharted waters.
On Monday, the offshore CNH/USD rose above the key $7 level for the first time since the 2009 global financial crisis. This sent the global financial markets reeling as they closely watched China to see how far they are willing to go.
The dollar is weaker against the euro and U.S. stock futures are lower on renewed trade war escalation and its negative impact on corporate profits as well as economic growth.
Asian Forex Traders React to Currency Escalation between China and the U.S.
Trade tensions between China and the United States are dominating today’s news headlines. Traders are growing increasingly pessimistic that the two economic powerhouses will sign a trade deal anytime soon. Both sides are escalating matters. This escalation, yesterday, led to the biggest selloff in the global equity markets this year.
Trade tensions started, anew, after President Donald Trump broke the trade war truce and announced a ten percent tariff against $300 billion of Chinese goods.
In response, companies in China will not import U.S. agricultural goods. This will lead Trump to retaliate even further as China is hitting him where it hurts the most and just ahead of the 2020 election. To make matters worse, yesterday, the U.S. Department designated China as a currency manipulator.
