Today we will discuss the news about yuan, sterling, dollar, and other news of the market and politics.
Li Keqiang, Premier of the Chinese government, hinted at targeted cuts in banks’ reserve requirement ratio. The Chinese yuan last traded at 7.007.
On Monday sterling reached a three-week low of $1.2905. Yesterday pound weakened to $1.2938. Boris Johnson, British Prime Minister, ruled out extending the period of the transition to leaving the European Union beyond December 2020. This news had an impact on the pound. Many economists are worried about too little time negotiating a new trade deal with the EU.
Head of global G10FX research at Standard Chartered bank, Steve Englander said that they expect investors to concern about cliff-edge Brexit risk to diminish. The political incentives do not support risking of economic disruption.
Meanwhile, the Australian dollar nears five-month high, When the New Zealand dollar closed behind.
Dollar ekes out a small gain helped by trade détente.
The dollar gained by optimism towards U.S.-China trade relations. Currency markets were entirely at the start of the holiday season. The euro slipped, heading back for a two-week low.
The dollar rose 0.1% with the index at 97. 781 against a basket of currencies. The euro versus the dollar was last down 0.2% at $1.1071.
As already said, Aussie is near a five-month high. Over global trade and China’s economy optimism gained. So, Aussie does well. The United States and China have announced that the trade deal’s phase-one concluded. Markets see the agreement as to the de-escalation of the countries’ long-running dispute.
The Australian dollar, with a peak of $0.6939, had its highest level since late July on December 13. Now the indicator is set to $.0.6930. Since the last week, the currency has gained more than one percent.
These are the main news on the market. Let’s wait for the next year and see what happens.