Tariff threats affect Chinese Yuan

Tariff threats affect Chinese Yuan

On Monday, Donald Trump’s fresh threats to lift levies on Chinese exports sent ripples through financial markets, thus affecting risk sentiment and backing safe-haven assets.

Over the weekend, US leader announced his plans to lift levies on $200 billion in Chinese goods from the current 10% to 25%, thus sending global equities down and spurring the safe haven appeal of the Japanese currency.

On the contrary, the Chinese yuan headed south to this year’s minimum as investors worried over the impact of the tariff lift on the world’s number two economy. Both the Australian and New Zealand dollars, whose countries have close economic ties with this leading Asian country, demonstrated similar tumbles.

As a matter of fact, riskier currencies, including the Turkish lira, Russian ruble, and Mexican peso also headed south on Monday.

Estimating the greenback’s purchasing potential versus its primary peers the USD index managed to gain 0.1% concluding the trading session at 97.34.

Besides this, the weekly Commitment of Traders Report from the US Commodity Futures Trading Commission uncovered that investors turned out to be the most bullish on the evergreen buck since December 2015, with bets of nearly $34.9 billion.

With Great Britain celebrating a bank holiday on Monday, the UK pound headed south by about 0.6% due to the fact the opposition Labour Party complained that UK Prime Minister Theresa May was disclosing details of their Brexit compromise, thus endangering an agreement.

Meanwhile, the common currency managed to hold its own versus the evergreen buck due to the fact euro zone business activity suddenly got better in April, while retail sales for March evaded an expected slump.


Monday started with volatility
Monday started with volatility

Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.

Latest news

Can the UK CPI surprise?
Can the UK CPI surprise?

The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.

The US Retail Sales Update
The US Retail Sales Update

The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.

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