China Taps the Brakes
Daily Forex Signals – China made it easier for traders to bet the yuan will fall in value.
China Taps the Brakes – Dollar Edges Higher as Stimulus Talks Stumble; Losses Loom
FxPremiere.com – The dollar edged higher in early European trade Monday, with negotiations over the latest stimulus measures in the U.S. seemingly in difficulties as the election approaches.
China’s exports imports fell in March
At 2:55 AM ET (0655 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was up 1% at 93.108, regaining a little ground after recording its biggest loss in six weeks on Friday, falling to a near-three-week low of 92.997.
Dollar Up as U.S. China Tensions Escalate
Elsewhere, EUR/USD dropped 0.1% to 1.1814, USD/JPY was down 0.1% at 105.50, GBP/USD was flat at 1.3050, while the risk-sensitive AUD/USD fell 0.2% to 0.7227.
The dollar had been hard hit Friday on hopes that a deal for new U.S. stimulus would be reached, reducing the need for this safe haven currency, after the Trump administration proposed a new $1.8 trillion package.
EUR/USD to Snap 2-Week Losing Streak
However, this offer ran into opposition from both sides, with the Democrats saying it was not comprehensive enough and the hard-line Republicans worried about the extent that this would increase the country’s debt pile.
Signal Dollar Down Amid Rising U.S.- China Tensions
“A ‘blue wave’ U.S. election and favorable news on the vaccine timeline could return the trade-weighted dollar and DXY index to their 2018 lows.”
The yuan hit a 17-month high on Friday, having gained more than 6% against the dollar since late May. At 2:55 AM ET, USD/CNY traded 0.3% higher at 6.7160.
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