Investing.com – The Chinese yuan inched up on Monday in Asia as China warned that yuan shorters could “suffer from a huge loss.”
The pair fell 0.1% to 6.8925 by 11:30 PM ET (03:30 GMT).
Guo Shuqing, head of China’s banking and insurance regulator, said in a speech that speculators “shorting the yuan will inevitably suffer from a huge loss.”
China will report its May economic performance on Friday. According to analysts, the official manufacturing PMI will likely contract amid the trade war with the U.S.
The pair gained 0.2% to 109.44 after U.S. President Donald Trump said the U.S. is making “great progress” in trade negotiations with Japan. A trade deal will not happen before the country’s elections in July, he noted.
Glen Fukushima, former deputy assistant of United States Trade Representative for Japan and China, believes the two side can reach an agreement in the next six to nine months.
The pair was trading near flat at 0.6552. The Reserve Bank of New Zealand will publish its financial stability report Wednesday.
The pair rose 0.2% to 0.6933.
The slipped 0.1% to 97.428, retreating further from two-year peaks, after weaker than expected U.S. economic data added to the view that the economy is losing momentum.
A report showing a decline in orders for U.S. durable goods, coming a day after data showing that manufacturing activity hit its lowest level in almost a decade in May, added to fears that the trade dispute with China is hitting growth.
Analysts now believe the Federal Reserve might consider cutting rates before the year end amid escalating trade tensions and the release of the recent weak data.
“In the current circumstances, we strongly suspect that further escalation in protectionism will lead the Fed to consider easing policy,” wrote Michael Hanson, head of global macro strategy at TD Securities. “Increases in inflation should be relatively short-lived, while the hit to growth could be more persistent.”
The pair rose 0.2% to 1.2737. The pair was largely unmoved by news on Friday that U.K. Prime Minister Thersea May announced her resignation effective June 7.
Chances of a “no deal” Brexit scenario has increased as four of eight leadership hopefuls said the U.K. must leave the EU on Oct. 31 even if this means a no-deal Brexit.
Markets in the U.K and the U.S. are closed on Monday for a holiday.
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.
Latest posts by investing.com (see all)
- Forex – Australian Dollar Steady After RBA Decision - June 4, 2019
- Yuan Watchers Say 7 Is No Longer a Sticking Point for China - June 4, 2019
- Fresh Losses Coming for Australian Dollar, Strategists Say - June 4, 2019