Chinese Renminbi Falls Even After Support from PBOC
October 8, 2018 9:42 amVideo
Latest News
- Trading Signals for GOLD (XAU/USD) for April 19-22, 2024: sell below $2,395 (+2/8 Murray – overbought) April 19, 2024
- USD/JPY: Simple Trading tips for novice traders on April 19th (US session) April 19, 2024
- GBP/USD: Simple trading tips for novice traders on April 19th (US session) April 19, 2024
- EUR/USD: Simple trading tips for novice traders on April 19th (US session) April 19, 2024
- GBP/USD: trading plan for the US session on April 19th (analysis of morning deals). The pound is trying to regain its advantage April 19, 2024
- EUR/USD: trading plan for the US session on April 19th (analysis of morning deals). The euro compensated for the losses April 19, 2024
- Storm in a teacup: EUR/USD analysis April 19, 2024
- Video market update for April 19, 2024 April 19, 2024
- Eurozone PMIs eyed as euro’s focus turns to rate cuts beyond June – Preview April 19, 2024
- Technical Analysis – NZDUSD falls to fresh 5-month low April 19, 2024
- EUR/USD. April 19th. Bostic, Fed: the rate cut will happen at the end of the year April 19, 2024
- Forecast for GBP/USD pair on April 19, 2024 April 19, 2024
- Weekly Forex Outlook: 14/04/2024 – US GDP and BoJ decision on top of next week’s agenda April 19, 2024
- Market Comment – Safe havens jump as Israel retaliates against Iran April 19, 2024
- Technical Analysis – USDCAD puts rally on hold near 1.3800 caution zone April 19, 2024
- USD/JPY: trading tips for beginners for European session on April 19 April 19, 2024
- GBP/USD: trading tips for beginners for European session on April 19 April 19, 2024
- EUR/USD: trading tips for beginners for European session on April 19 April 19, 2024
- Supercharged US dollar turns to GDP growth data – Preview April 19, 2024
- Technical Analysis – USDCHF remains in bullish structure April 19, 2024
Last week, China had a week’s long holiday as the country celebrated its independence. Over the weekend, the People’s Bank of China (PBOC) moved to stimulate the economy by lowering the capital reserve requirements for banks. The new measure will likely free more than $109 billion in capital. This move was also aimed at helping the economy stabilize as the impacts of the trade war become more pronounced.
Today, the Chinese Renminbi fell sharply against the USD even after showed a boost in services PMI. The data showed that the PMI rose to 53.1, which was higher than the August data of 51.5. The most likely reason why the Chinese currency declined is that the US seems to be moving towards more anti-China measures. Just last week, Bloomberg wrote that China had placed tracking chips in products manufactured by Apple and Amazon. In the same week, Mike Pence delivered a speech highly-critical of the Chinese. In addition, there is a consensus in Washington about the threat posed by China.
The USD/CNH pair reached a YTD high of 6.95 last month. Since then, the pair has traded within a narrow range even as the currencies of other emerging market countries have fallen. This narrow range has also been confirmed by the narrow Bollinger Bands as shown below. As the Fed continues to tighten, there is a possibility that the pair may continue moving up.
The post Chinese Renminbi Falls Even After Support from PBOC appeared first on Forex.Info.
Related Posts: