What is going on in the market today ?
Greenback declines notwithstanding worsening US-China trade conflict
On Monday, the evergreen buck traditionally viewed as a safe-haven asset, went down in Asia after tension with China strengthened against the backdrop of everlasting worries surrounding Chinese technology company Huawei Technology.
Gauging the purchasing potential of the American currency versus its main counterparts the USD index declined by 0.7% hitting 95.845.
Tension with China was still in focus after reports over the weekend told that China’s Vice Foreign Minister Le Yucheng summoned both the Canadian and US ambassadors just to lodge a strong protest and urge Huawei Technology’s CFO Meng Wanzhou’s release.
The previous week Meng was detained in Vancouver. She’s going to be extradited to the United States, where she could be imprisoned for 30 years.
Besides this, American non-farm payrolls headed north by 155,000 jobs in November, which is below experts’ median estimate of 200,000 jobs. Wage surge turned out to be weaker than anticipated even though its annual rally was still close to the highest value for nearly a decade.
The previous week, Fed Chairman Jerome Powell told that American interest rates were close to neutral levels that financial markets interpreted as a sign of a deceleration in rate lifts.
The currency pair USD/CNY surged by 0.3% hitting 6.8948.
On Saturday, Chinese customs data disclosed that China’s November exports managed to ascend by up to 5.4% from 2017, which is below the 10% rally forecast by a Reuters survey.
Annual surge for exports to all of the Asian country’s key partners speeded down considerably, as follows from the data.
In addition to this, the currency pair USD/JPY slumped by 0.2% hitting 112.45 after data disclosed that Japan’s third-quarter GDP decreased at an annualized rate of about 2.5% in contrast with an initial forecast of a 1.2% contraction and also against experts’ median estimate for a 1.9% dive.
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