Cryptocurrencies are going down... What may signal a recovery?
Greenback strengthens against yen on US softer approach to Chinese investment
On Friday, the evergreen buck stood firm against the Japanese yen after Donald Trump clang to a softer stance on Chinese investment in American technology companies.
On Wednesday, the White House uncovered that it wouldn’t consider putting another 25% limits on Chinese ownership in American tech-related businesses as reports had hinted earlier this week. The US government would add much value to the newly strengthened Committee on Foreign Investment when it comes to handling such issues.
The USD Index, normally estimating the greenback’s purchasing power against a pack of main currencies, kept to 95.02, adding about 0.01%. On Thursday, the index tacked on to 95.534, which is the highest value since 2017.
The prospects of soaring American interest rates were also cited as backing the evergreen buck.
The Japanese yen headed south on Friday. The currency pair USD/JPY soared by 0.18% being worth 110.69 because trade tensions between America and its key trading partners receded.
At the same time the Chinese Yuan, which keeps going down this week, is still in focus due to the fact that on Friday reports suggested that China’s officials would step in and try to slow the dive in its national currency if it dives toward 6.7 per greenback. It’s due to the fact breaking through that crucial level might further worsen market sentiment in the already tumbling equity markets. On Friday, the currency pair USD/CNY demonstrated an outcome of 6.6192, edging down by 0.11%.
Meanwhile, market experts and market participants are waiting for Chinese economic data to be released tomorrow. That’s one of the most long-awaited readings after trade tensions between the world’s two leading economies have worsened.
Chinese PMIs didn’t change. Market experts pointed out that if PMIs demonstrate a major deterioration, it can heavily impact market sentiment.
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