Yuan wobbles on Trump trade comments, details of China rate reforms awaited

HONG KONG (Reuters) – The yuan wavered on Monday after U.S. President Donald Trump said he was not ready yet to make a trade with China.

Traders were also cautious ahead of the debut of China’s new benchmark lending rate on Tuesday, which was announced at the weekend.

Analysts believe the reforms will open the door to rate cuts, possibly as early as Tuesday, but are divided over the size of any initial reduction and how much it may help struggling smaller companies in the near term.

Spot yuan traded at 7.0447 per dollar at midday, pretty much unchanged from the last session close and 0.12 percent away weaker than the midpoint , which was set by the People’s Bank of China at 7.0365.

The central bank on Saturday unveiled long-awaited interest rate reforms to help lower borrowing costs for companies and support slowing growth, which has been dragged by its protracted trade war with the United States.

The revamped loan prime rate (LPR), effective on Tuesday and linked to rates in medium-term lending facility (MLF), is the equivalent of a 45 basis point rate cut on loans, ANZ analysts wrote in a note on Monday. Several traders said they expect the new LPR to trim by 10 to 15 basis points.

The tweak will help achieve the State Council’s goal of easing financing costs for small businesses by 1 percentage point, but tax cuts will also shoulder part of that, according to a Shanghai-based trader.

“We need to hear more about the supplementary measures,” to gauge how far LPR and MLF rates will fall, said another trader in Shanghai.

However, unlike more open markets such as the United States, China’s capital control will likely cap the pressure from lower interest rates on its managed currency, said a Hong Kong-based trader, adding “it will trade where the PBOC wants it to be.”

Traders said the U.S.-China trade talks will continue to dominate the yuan’s direction in the near term.

White House economic adviser Larry Kudlow said on Sunday trade officials from the two countries would speak within 10 days and a Chinese delegation is flying to the United States to follow up.

But Trump said on the same day he is “not ready” for a deal with Beijing, hinting again that he would like to ongoing protests in Hong Kong resolved first.

Trump also said he would not like to deal with Huawei Technologies Co Ltd – even after Reuters and other media outlets reported on Friday the U.S. Commerce Department is expected to extend a reprieve for the company to buy supplies from U.S. companies.

The was trading 0.14 percent softer than the onshore spot at 7.0545 per dollar.

The global () rose slightly to 98.207 from the previous close of 98.142.

US China interest rate – Aug 19, 2019 – https://fingfx.thomsonreuters.com/gfx/mkt/12/4892/4849/US%20China%20interest%20rate%20-%20Aug%2019,%202019.jpg

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Exclusive: China central bank official says yuan at right level, disorderly capital flows unlikely

© Reuters. FILE PHOTO: Man sits in front of the headquarters of the People's Bank of China, the central bank, in Beijing © Reuters. FILE PHOTO: Man sits in front of the headquarters of the People’s Bank of China, the central bank, in Beijing

By Kevin Yao and Ryan Woo

BEIJING (Reuters) – China’s yuan is at an appropriate level currently and two-way fluctuations in the currency will not necessarily cause disorderly capital flows, a senior official at the People’s Bank of China told Reuters on Tuesday.

The yuan has weakened nearly 2.4% since U.S. President Donald Trump threatened early this month to impose more tariffs on Chinese goods from Sept. 1, though there are signs China is trying to stem the declines.

“The current level of exchange rate is appropriately aligned with fundamentals of China’s economy and market supply and demand,” Zhu Jun, head of the central bank’s international department, said in an interview with Reuters.

Zhu said China was “shocked” by the U.S. Treasury Department’s move last week to label China a currency manipulator, hours after Beijing let the yuan slide past the key 7-per dollar level to its lowest level since the global crisis.

But Zhu asserted that China will be able to “navigate all scenarios” arising from the Trump administration’s decision to label it a currency manipulator for the first time since 1994, which rattled global markets.

China is unlikely to face serious consequences from getting that label given the apparent lack of Group of Seven and International Monetary Fund support for Washington’s move, former and current U.S. and G7 officials said.

But some Chinese advisers and former officials have sounded alarm bells over a possible wider conflict between China and the United States. The year-long trade war between the world’s two largest economies has already spread beyond tit-for-tat tariffs on goods to other areas such as technology and currency.

UPGRADING THE TRADE WAR?

The real aim of the U.S. currency manipulator label is to disrupt China’s financial markets and its economy, said Chen , former chairman of the China Development Bank – the country’s biggest policy bank.

“The U.S. step to list China as a currency manipulating country is an important action to upgrade the trade war into a financial war,” Chen, who remains an influential figure on economic issues, told a forum over the weekend.

Zhu of the central bank told Reuters that in the short run, external shocks will play a role by influencing the yuan’s movements.

“That said, as long as RMB moves in an orderly manner based on market supply and demand, such movements in either direction do not necessarily mean disorderly movement of capital flow,” she said. The yuan is also known as renminbi, or RMB.

Zhu reiterated that recent yuan volatility was a normal market reaction to escalating trade tensions, adding “If it’s preventing such responses that would constitute real manipulation.”

Analysts say a weaker yuan could help China’s ailing exporters to cope with higher U.S. tariffs amid an escalating trade war, but any sharp yuan drops could fuel capital outflows as the world’s second-largest economy faces increased headwinds.

REPEATED PLEDGES

Chinese leaders have repeatedly pledged that they would not resort to competitive currency devaluation to support exports, or use the currency as a tool to cope with trade disputes.

Zhu said the yuan will be supported by China’s solid economic fundamentals, a stable debt ratio, contained financial risks, adequate foreign exchange reserves, and favorable interest rate spreads between China and major advanced economies.

“Over the medium and long term, we have full confidence in RMB as a strong currency,” she said.

In the second quarter, China’s annual economic growth pace slowed to a near 30-year low of 6.2%. Many analysts had expected a steadying in the second half as earlier stimulus measures started to kick in, but Trump’s latest tariff threat is likely to further pressure exporters and their domestic supply chains.

China’s foreign exchange reserves – the world’s largest – fall by $ 15.54 billion in July to $ 3.104 trillion, central bank data showed, amid rising trade tensions.

China burned through $ 1 trillion of reserves supporting the yuan in the last economic downturn in 2015, during which it devalued the currency in a surprise move. Since then, Beijing has shored up restrictions on capital outflows.

Let’s block ads! (Why?)

Forex News

Forex – Yen Rises Amid Trade Concerns; Yuan Remains in Spotlight

© Reuters.  © Reuters.

Investing.com – The safe-haven yen gained on Monday in Asia amid concerns surrounding the Sino-U.S. trade war.

The pair dropped 0.2% to 105.42 by 1:39 PM ET (05:39 GMT).

On Friday, U.S. President Donald Trump said he was not ready to make a deal with China and even called the scheduled trade talks in September into question.

Meanwhile, the remained in the spotlight after the People’s Bank of China (PBOC) set the official midpoint reference at 7.0211 per dollar on Monday, which was stronger than what analysts expected but was still the third consecutive session weaker than the key 7-yuan-per-dollar level.

The pair last traded at 7.0628, up 0.03%.

Last week, the U.S. Treasury announced that it officially labelled China as a currency manipulator after Beijing allowed the yuan to fall past 7 per dollar for the first time since 2008. White House trade advisor Peter Navarro warned that Washington will respond forcefully if China continues to weaken its currency to counter the effects of tariffs placed by the U.S.

The PBOC later denied it is deliberately devaluing the Chinese currency.

China’s moves “stoked fears of a competitive devaluation policy, putting pressure on other Asian currencies,” analysts at risk consultancy Eurasia Group wrote in a note that was cited by CNBC.

The article noted that China is not likely to allow any further rapid depreciation of the Chinese currency since “substantial devaluation would drive capital outflows and create one-way bets in the market on further depreciation, as seen in 2015 and 2016.”

China would want to keep the pace of depreciation against the dollar gradual, the analysts added. “The bank will also be careful not to allow the (yuan) to depreciate on a sustained basis against a broader basket of currencies.”

The pair and the pair were both largely unchanged at 0.6788 and 0.6470 respectively.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forex – Dollar Falls vs High-Yielders as Yuan Supports Risk Assets

© Reuters.  © Reuters.

Investing.com – The U.S. dollar fell sharply against higher-yielding currencies Thursday but rose against haven currencies as upbeat Chinese trade data and better-than-expected jobless claims went some way to restoring global risk appetite.

The , which measures the greenback’s strength against a basket of six major currencies, rose 0.1% to 97.422 by 10:12 AM ET (14:12 GMT), after reaching an earlier high of 97.507. But that modest move disguised losses of over half a percent against units such as the and emerging currencies not in the basket, such as the . The dollar gained against the partially reversing losses over the last two days.

Meanwhile, weekly fell, indicating that the slowdown in the U.S. economy still hasn’t reached at least some parts of the labor market.

Initial claims fell to 209,000 for the week ended August 3, the Labor Department said on Thursday. Data for the prior week was revised to show 2,000 more applications received than previously reported.

Overnight, new data showed that China’s exports rose 3.3% in July, the biggest jump in four months, while imports fell 5.6% on the year, which was less than expected. The data helped ease concerns over a currency war after China let its slide to its lowest in over a decade.

Market expectations for another Federal Reserve rate cut in September remain, with other central banks around the world also easing monetary policy. New Zealand, India and Thailand cut interest rates this week as the spillover from the U.S.-China trade conflict, along with more local issues, hurt their economies.

The Japanese yen, which is seen as a safe-haven in times of market turmoil, inched higher with down 0.1% to 106.10. The euro gained across the board amid reports of the German government looking favorably on a possible stimulus package, with rising 0.1% to $ 1.1200, while slipped 0.1% to $ 1.2123.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

The winners and losers in Chinese yuan moves might not be who you think

Asian currencies aren’t particularly sensitive

Deutsche Bank is out with a report looking at which currencies are sensitive to large positive and negative moves in the Chinese yuan.

In the event of extreme positive or negative moves, it’s not nearby countries that would suffer, it’s the South African rand, Turkish lira and Colombian peso.

Negative CNH shocks: ZAR, TRY and COP are most sensitive to ‘extreme’ negative CNH moves, while SGD, KRW and PHP are least sensitive. Broadly, the analysis shows Asian currencies are amongst the least sensitive to negative CNH shocks, which likely reflects lower FX vol in the region. The fact that geographically distant currencies such as ZAR and TRY are most sensitive illustrates the systemic nature of CNH shocks to the market.

Positive CNH shocks: ZAR, COP and CEE3 are the most sensitive to ‘extreme’ CNH rallies, while SGD, KRW, PHP and INR show the lowest sensitivity. We find CEE3’s high sensitivity interesting, potentially reflecting the strong trade linkages between Germany and China.

That’s something to keep in mind when the yuan takes another leg down, or starts a rebound.
ForexLive

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed

Forex – Dollar Steady as Firmer Yuan Calms Trade Nerves

© Reuters.  © Reuters.

Investing.com – The dollar was holding steady against a currency basket on Thursday, as strong Chinese export figures and a move by Beijing to limit a decline in the yuan calmed investor nerves over the renewed escalation in the U.S.-China trade war.

Data showed Chinese exports rose in July from a year earlier, while analysts had looked for a fall of 2%, and policymakers fixed the daily value of the yuan at a firmer level than many had expected, even though it was beyond the 7 per dollar level for the first time since the global financial crisis.

The , an index that tracks the greenback against the euro, yen, sterling and three other currencies was little changed at 97.30 by 03:48 AM ET (07:48 GMT).

“The recent comments from Chinese officials suggest they want to stabilize their currency, otherwise a sharp currency drop may fuel capital outflows,” said Manuel Oliveri, an FX strategist at Credit Agricole in London.

“The other factor helping risk sentiment is a growing swathe of central bank cuts.”

This week, New Zealand joined India and Thailand in cutting interest rates, with market expectations growing that other major central banks will join in further easing monetary policy.

Indeed, market expectations for more than a quarter point rate cut from the U.S. Federal Reserve in September is still firmly baked into bond markets, despite an overnight bounce in global markets.

Those expectations forced the dollar to weaken also against the and the yen.

The dollar was down 0.14% at 106.10 . The Japanese currency hit 105.50 overnight, its strongest level since Jan. 3, before pulling back slightly.

“The yen’s appreciation versus the dollar may have slowed for now, but it stands to keep gaining in the longer term,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. “Its other peers, notably the antipodean currencies, have weakened severely and this provides overall support to the yen.”

The was up 0.23% to 0.6458, following a drop to a three-and-a-half year year low of 0.6378 on Wednesday after the rate cut.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

U.S. Stock Futures Climb After Yuan Fix Stronger Than Expected

(Bloomberg) — U.S. stock index futures rose in Asia after China’s central bank set its daily fixing stronger than expected, tempering concerns that the nations’ trade war will worsen.

S&P 500 Index futures contracts expiring in September rose 0.2% as of 11:30 a.m. in Tokyo, rebounding from an earlier 0.4% loss after the People’s Bank of China set its daily reference rate at 7.0039 per dollar. Analysts and traders had projected a rate of 7.0156, according to the average of 21 forecasts compiled by Bloomberg in a survey. Futures on the and rebounded as much as 0.3% and 0.2%, respectively.

“If the Chinese government intervenes less and lets the currency find its own level, it’s actually better from a reputational point of view,” Nader NaeImi, AMP Capital’s head of dynamic markets in Sydney, said on Bloomberg Television.

The bounce in Asia came after U.S. equities and benchmark Treasury yields mounted an impressive comeback late Wednesday, reversing sharp drops as investors turned more positive on the outlook for global growth amid central-bank moves to ease monetary policy. The S&P 500 Index eked out a modest gain after tumbling as much as 2%, while yields on 10-year Treasuries edged higher after an earlier plunge.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

China’s Yuan Fix Is Unmissable These Days for Currency Traders

(Bloomberg) — China’s central bank is under pressure to issue its weakest currency fixing in more than a decade, a move that risks spurring more losses in the yuan.

The People’s Bank of China set its daily currency reference rate only marginally stronger than 7 a dollar on Wednesday. That leaves it little headroom if it wants to track the spot rate, which fell 0.3% to 7.0463. While the yuan breached the key 7 level this week for the first time since May 2008, the fixing hasn’t.

At stake is the risk that markets will see Thursday’s reference rate as a signal on policy, as a string of fixings on the weaker side of 7 could exacerbate concerns around further yuan depreciation and capital flight. The central bank has already taken some steps this week to limit declines after the yuan sank the most in four years, including reassuring foreign companies that the currency won’t weaken significantly.

“Policy makers’ priority now is to limit the risks of capital outflows,” said Xing Zhaopeng, a markets economist at ANZ Bank China Co. He expects the PBOC will keep the rate stronger than 7 to maintain stability.

The fixing is published every trading day at 9:15 a.m., after a group of 14 lenders submit their rates. The yuan is then allowed to move 2% in either direction. The rates are calculated with formulas that take into account factors such as the previous day’s official close at 4:30 p.m, the yuan’s move against a basket of currencies and the moves in other major exchange rates.

The mechanism has been used to manage volatility after China removed the yuan’s peg to the greenback in 2005. Until at least 2015, traders weren’t able to offer prices that diverged from the fix by more than the allowed range. The last time the yuan tested the band was in February 2015, when it closed 1.99% weaker than the reference rate. The trading system was upgraded after the shock devaluation in August that year.

The yuan’s slump this week means the currency is once again taking the spotlight in China’s trade dispute with the U.S., stoking criticism Beijing is depreciating its currency to soften the impact of U.S. tariffs. Donald Trump’s administration labeled China a currency manipulator, a formal designation which may prompt counteractive measures. The PBOC rejected the accusation.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forex – China’s Yuan Steadies, Investor Sentiment Remains Fragile

© Reuters.  © Reuters.

Investing.com – China’s yuan steadied on Tuesday after overnight declines, but market sentiment remained fragile a day after a steep selloff in global markets spurred by fears over the escalating U.S. – China trade war.

China’s extended the previous day’s declines and briefly weakened to 7.1382, the lowest since international trading in the Chinese currency began in 2010. But it pulled back to 7.0690 after Beijing’s firmer-than-expected yuan fixing on Tuesday.

The onshore fell to an 11-year low early on Tuesday, brushing 7.0699 per dollar.

In a symbolic move, Beijing let the yuan breach 7-per-dollar on Monday for the first time since late 2008 following U.S. President Donald Trump’s decision to impose 10% tariffs on $ 300 billion of Chinese imports, ending a month-long trade truce.

Analysts saw China’s decision as a signal that it will not back down and that a trade war which is already affecting global growth will only worsen from here.

But the Chinese central bank’s mid-point fixing on Tuesday of 6.9683 was firmer than market expectations, and the yuan’s retreat slowed.

U.S. Treasury Secretary Steven Mnuchin said in a statement on Monday the government had determined that China is manipulating its currency and that Washington would engage with the International Monetary Fund to eliminate unfair competition from Beijing.

“Trump has already hit China with so many tariffs, we’re not certain what else can he do now that he’s declared China a currency manipulator,” said Takuya Kanda, general manager of research at Gaitame.Com Research Institute in Tokyo.

“The trade war has entered a new phase and we are very unsure what comes next. This type of uncertainty will keep the yuan weak and the dollar weak versus the yen.”

The Japanese , a perceived safe-haven in times of market turmoil and political tensions, touched a seven-month high of 105.53 per dollar before dropping back to 106.37 in volatile trade.

The , another currency sought in times of turmoil, has gained roughly 1% against the dollar this week. It set a six-week peak of 0.970 franc per dollar, before pulling back to 0.9741.

The was little changed against the dollar at 1.1206.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forex – Yuan Falls Below 7 per Dollar as Trade Tensions Fuel Selloff

© Reuters.  © Reuters.

Investing.com – The tumbled more than 1% on Monday, falling below 7 per U.S. dollar for the first time since the 2008 financial crisis, as fears over a sudden escalation in the U.S.-China trade war sparked a selloff in Asian currency markets.

The yuan dropped below the 7 per dollar level, regarded as a major support level, falling to as low as 7.1097 per dollar in trade and 7.0424 to the dollar onshore.

“This could well be the biggest moment for the yuan this year. The impact of U.S.-China trade is turning out to be very big,” said Masashi Hashimoto, senior currency analyst at MUFG Bank.

“Looking at the mid-point, the People’s Bank of China is trying to stem the yuan’s fall,” he said. “The PBOC doesn’t look like it is trying to use a weaker yuan to counter U.S. trade pressure. The yuan’s fall seems to be stemming from panicky selling.”

The steep selloff came after Beijing vowed on Friday to fight back against U.S. President Donald Trump’s abrupt decision to slap 10% tariffs on the remaining $ 300 billion in Chinese imports, a move that ended a month-long trade truce.

The weaker yuan weighed on Asian currency markets, sending the 1% lower to hit a three-year low of 1,218.3, while the new fell more than 0.5% to a two-month low of 31.61.

The flight to safety lifted the yen, which often gains in times of market stress thanks to Japan’s position as the world’s largest creditor. The slipped to a seven-month trough of 105.78 yen, while the sank to its lowest since April 2017 at 117.64 yen.

Weakness against the yen saw the dip 0.11% to 97.74 by 02:45 AM ET (06:45 GMT) though the greenback was up against currencies exposed to China or commodities, including the Australian dollar.

The , a liquid proxy for emerging market and China risk, slipped to a fresh seven-month trough of 0.6748 after losing 1.6% last week.

The was boosted by safe-haven demand from the escalating trade tensions. Trump is also eyeing tariffs on the European Union, but is yet to make any formal announcements.

The was a touch higher against the dollar at 1.1119, extending its recovery from a two-year low of 1.1027 touched on Thursday.

On Friday, the closely-watched U.S. employment data showed non-farm payrolls increased by 164,000 jobs in July, fewer than the prior month, and wages increased modestly.

The data cemented expectations that the Federal Reserve will cut interest rates again in September after it delivered its first rate reduction in more than a decade last month.

The hovered near 2017 lows at 1.2106, pressured by concerns about Britain exiting the European Union without a deal in place.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News