The big FX news of the day must be the yuan once again showing surprising strength, trading below 7 to the US dollar during early Wednesday trading. This yuan vitality is the result of improved market sentiment, driven by hopes that the trade talks between the US and China will deliver a phase one agreement this month.
Both sides have been softening the rhetoric; first the US made concessions in allowing American firms to supply Huawei with technology and now the People’s Bank of China appears to be joining in on the spirit of goodwill by setting the daily reference rate at 7.008. This was a little higher than expected and has boosted the recent resurgence of the yuan.
Ricardo Evangelista – Senior Analyst, ActivTrades
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Daily market commentary: The yuan once again showing surprising strength was first posted on November 6, 2019 at 12:49 pm.