Welcome to Tuesday!
Greenback edges down versus yen on surging worries over trade clashes
On Tuesday, the evergreen buck went down versus the Japanese yen during the Asian trade because worries as for the intensification of the struggle between America and its trading partners kept reducing risk appetites.
Financial markets are concerned about mixed messages from the American government as for its international trade stance.
On Monday, American Treasury Secretary Stephen Mnuchin told that the forthcoming limitations on investments from the department are going to be specific not only for China. They will also have to do with all countries, which are willing to thieve US technologies.
Nevertheless, this statement was debunked by the White House Trade and Production Advisor Peter Navarro. This statesman told that any investment limits rolled out by the current presidential administration would be focused on China, and not on other nations.
It seems that the US authorities still have several different views on the proposed limits on foreign investment. Market experts are assured that the stock and currency markets will probably nervous due to messages having to do with trade until July 6, exactly when Trump will uncover his next steps in the trade war with China.
Worries were driven by the news that after on Friday Trump had threatened to put a 20% duty on vehicles imported from the EU, the European bloc told it would have to adequately respond.
The Chinese currency headed south steeply versus the evergreen buck. The currency pair USD/CNY managed to surge to 6.5552 on Tuesday, which is its highest value since December 28. It was probably caused due to the introduction of liquidity by China’s key financial institution.
On Sunday, China’s major bank told that it would cut the amount of cash that some financial institutions are obliged to keep in reserve.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums…