Currency Rate: Yuan Climbs As China Warns Shorters A "Huge Loss"
May 27, 2019 | Monday
On Monday, the Chinese yuan climbed up in Asia. That mostly led by China's warning for yuan shorters and a likely "huge loss" suffering. That result in a 0.1 percent fall on USD/CNY at 6.8925 during 11:30 PM ET/03:30 GMT.
According to Guo Shuqing, head of China's banking and insurance regulator, the speculators who go short on yuan will "inevitably suffer" a great loss.
The economic performance of China for the month of May expects to be out this coming Friday. A number of analysts estimate the official manufacturing PMI is likely to contract as pushed by the trade war with the United States.
Meanwhile, the USD/JPY pair incline by 0.2 percent to 109.44 upon U.S. President Donald Trump announced that the U.S. is having "great progress" when it comes to the trade negotiations with Japan. President Trump also notes that a trade deal will not occur before Japan's election scheduled in July.
According to former deputy assistant Glen Fukushima of United States Trade Representative for Japan and China, both sides are able to reach an agreement within the next six to nine months from now.
Meanwhile, the NZD/USD pair was steady at 0.6552, while the Reserve Bank of New Zealand is to publish its financial stability report this coming Wednesday. The AUD/USD pair rose 0.2 percent at 0.6933.
Elsewhere, the U.S. dollar index slides at 0.1 percent at 97.428. It retreats more from its two-year peaks. That upon a weaker than expected U.S. economic data, also considering the view that the U.S. economy is losing its momentum.
There's a report showing a decline in orders for U.S. durable goods. That came in the day upon a data showed that manufacturing activity reaches its lowest level in almost a decade during the month of May. That add fears that the trade conflict against China is impacting the country's growth.
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