China's Yuan Becomes 'King' This Week, How About USD?
The king of the US currency the dollar may end the week trading in losses as investors await more economic data from the United States to gauge the policy path of the Federal Reserve (Fed).This was shown by the greenback's decline from a 2-and-a-half-month high against the yen in the European session.Even so, the yen remains under pressure due to the difference in its monetary policy with the United States which continues to raise interest rates higher.Meanwhile, the 10-year US bond yield which is the source of the giant currency's strength continues to retreat from its 4-month high but is still above 4.00%.The market is now waiting for another data to be published in the New York session, which is the PMI report of the US ISM survey service.Looking at broader market movements, the euro traded slightly higher, trading around 1.0620 against the US dollar.The pound continued to weaken below the 1.2000 price level against the greenback after former Prime Minister Boris Johnson said that a new agreement between the European Union (EU) and the UK would be difficult to get approved.In addition, the Aussie and New Zealand dollars are trying to recover further from the losses recorded earlier on the impetus from the expected stronger economic recovery in China.Following strong Chinese manufacturing data released on Wednesday, it is seen as still supporting both currencies to trade higher.The yuan also remained strong, with it set to close the week's trade up 0.8% on upbeat economic data.
The king of the US currency the dollar may end the week trading in losses as investors await more economic data from the United States to gauge the policy path of the Federal Reserve (Fed).
This was shown by the greenback's decline from a 2-and-a-half-month high against the yen in the European session.
Even so, the yen remains under pressure due to the difference in its monetary policy with the United States which continues to raise interest rates higher.
Meanwhile, the 10-year US bond yield which is the source of the giant currency's strength continues to retreat from its 4-month high but is still above 4.00%.
The market is now waiting for another data to be published in the New York session, which is the PMI report of the US ISM survey service.
Looking at broader market movements, the euro traded slightly higher, trading around 1.0620 against the US dollar.
The pound continued to weaken below the 1.2000 price level against the greenback after former Prime Minister Boris Johnson said that a new agreement between the European Union (EU) and the UK would be difficult to get approved.
In addition, the Aussie and New Zealand dollars are trying to recover further from the losses recorded earlier on the impetus from the expected stronger economic recovery in China.
Following strong Chinese manufacturing data released on Wednesday, it is seen as still supporting both currencies to trade higher.
The yuan also remained strong, with it set to close the week's trade up 0.8% on upbeat economic data.
