Let’s see what has changed after Friday. China-U.S. will most probably sign the Phase-one trade deal on Wednesday. On Monday, China’s yuan led a rally in trade-sensitive currencies. As the imminent signing of a preliminary U.S.-China trade deal boosted sentiment, the Australian dollar recovered some recent losses.
On rising-rate cut expectations, the sterling slides.
On Wednesday China-U.S. Phase-one agreement is going to sign at the White House. It will be a first step towards ending a damaging 18-month trade dispute between the world’s largest two economies.
Analyst at RBC Capital Markets is Adam Cole. He said that was an absence of any important announcements over the weekend. It is why marketers have defaulted to small risk-one moves overnight.
The currency most attuned to U.S.-China trade developments is the offshore yuan. The yuan crossed the 6.9 per dollar mark to hit a new 5-1/2 month high of 6.8944. It is 0.3% higher on the day against the United States greenback.
Some analysts and investors said that yuan is the unexpected enjoying turn as a haven.
The Australian dollar has been hurt by worries referring to the economic damage of the country’s ongoing bushfires. Nevertheless, now it rose to 0.3% to hit a one-week high of $0.6919. Since Thursday, the New Zealand dollar climbed 0.2% to its strongest at $0.6650.
The yuan was a multi-year low in September. Now it had a turnaround. It reflects investors’ confidence growth that the words of the trade war have passed.
The Korean won is trading sensitive. To 109.65 per dollar, the Japanese yen weakened 0.1%. It was close to a seven-month low. It slid 0.6% to an 8-month low against the Korean won. Overall, trading volumes in Japan reduced during a holiday.
These are the main news for today.