Market updates on July 17
What is going on in the market today ?
Evergreen buck reaches fresh 4-month peak
On Monday, the evergreen buck reached a four-month maximum versus the Chinese yuan, although it was lower against the Japanese yen as well as Swiss franc due to the fact that the escalating trade conflict between China and America backed bids for ‘safe-haven’ assets.
The evergreen buck managed to hit 109.73 yen, sliding about 0.2% from late Friday, and having slumped to 109.60 overnight. It turned out to be a bit higher than the three-month minimum that the currency pair reached on Friday as a fresh round of American levies on Chinese imports came into effect.
The greenback reached a fresh four-month maximum versus the Chinese yuan of 6.8654 overnight.
Over the weekend, American leader initiated a process to have tariffs on all remaining untouched Chinese goods levied 25%, although the two leading economies kept negotiating, avoiding an all-out breakdown of the negotiations.
As some financial analysts pointed out, it was quite logical that any deal to have the dispute clarified is going to be postponed and global surge in the second quarter could be affected.
It represents a considerable change compared to market hopes for a deal signed this week. In fact, trade uncertainty doesn’t appear to be the market’s friend, and this makes investors take a more cautious stance in the nearer future, notwithstanding the better economic data of late.
Gauging the evergreen buck’s purchasing power versus its six key rivals the USD index hit, standing still from Friday due to the fact weakness against safe havens was compensated by a tumble versus risk proxies such as the Australian and Canadian dollars.
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A chance for the Australian dollar
Australia will publish the employment change and unemployment rate on July 18, at 4:30 MT time.
Pay attention to the inflation release for Canada
Canada awaits the release of monthly CPI on July 17, at 15:30 MT time.
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