We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Have central banks run out of ammo? And where are central banks heading? Find out from cross-asset class trader, @JohnNetto only on Trading Global Markets Decoded #podcast with @MartinSEssex here: https://t.co/Twr44cZ1GB https://t.co/HprpRueTXH
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.86%, while traders in France 40 are at opposite extremes with 75.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/PG6QQFO8tv
  • What is market volatility and what does a market event volatility look like? Find out from @PaulRobinsonFX here: https://t.co/vg7w10la3j https://t.co/yKEBSyKbgS
  • RT @globaltimesnews: China-US #tradetalks must be based on equal footing and mutual respect. The deal must be mutually beneficial, said Chi…
  • RT @LiveSquawk: China Offers No Confirmation On US Trade Deal – WSJ https://t.co/hWUwdf4iow
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.28% Silver: 0.26% Gold: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/La4HQtV3ur
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.68% 🇪🇺EUR: 0.48% 🇳🇿NZD: 0.26% 🇨🇦CAD: 0.18% 🇦🇺AUD: 0.11% 🇯🇵JPY: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/SoW8VDJZgA
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.32% France 40: 1.22% Wall Street: 0.55% US 500: 0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hXfpb9bT4W
  • Euro vs USD Forecast: EUR/USD Gears up to 1.1200 Handle – What’s Next? More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2019/12/13/Euro-vs-USD-Forecast-EURUSD-Gears-up-to-1.1200-Handle-Whats-Next-MK.html/?CHID=9&QPID=917714 https://t.co/DkAGBJlDTH
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/gfDv4QcaZ7
Yuan Eyes on US-China Leaders’ First Summit

Yuan Eyes on US-China Leaders’ First Summit

2017-04-01 03:07:00
Renee Mu, Currency Analyst
Share:
Yuan Eyes on US-China Leaders’ First Summit

Fundamental Forecast for the Yuan: Neutral

The offshore Yuan continued to consolidate against the U.S. Dollar this week and remained stronger than PBOC’s guided levels. In the coming week, China will have several major economic indicators to be released. More importantly, China’s President Xi Jinping will meet the U.S. President Trump on April 6th and 7th, the first face-to-face talks between the two leaders. The U.S.-China trade condition is expected to be one of the most important topics at the meetings. Whether the two largest economies in the world can make progress in solving trade issues could directly impact Dollar/Yuan rates.

China’s Deputy Foreign Minister Zheng Zeguang told at a press briefing on Friday that “cooperation between the two countries is the only right choice” to achieve a “win-win” outcome. In terms of trade, Mr. Zheng said that “China made a trade surplus against the U.S. but held deficits to other countries. In the bilateral trade with the U.S., the balance on goods was a surplus while the balance on services was a deficit.” He continued to say that “China has no intention to devalue the Chinese currency to stimulus exports”. According to the Chinese FX regulator, China’s trade surplus in goods narrowed -14% in 2016 while the deficit in services expanded +12%. From the earlier annual National People’s Congress meetings to this week’s press briefings, China has sent out multiple signals that it wants to avoid major trade conflicts with the U.S.

On the other hand, the U.S. President has his own agenda. This Thursday, a couple of hours following the announcement of the US-China summit, Trump tweeted that “the meeting next week with China will be a very difficult one”. “We can no longer have massive trade deficits and job losses”. Also, President Trump has been considering to launch a border adjustment tax, which from China’s point of view, it is “controversial”. At the summit, if Trump takes a hardline on China over its trade practices, it may dampen the outlook of China’s exports and imports condition over the following periods, adding bearish momentums to the Yuan.

In addition to this top theme, China will release March Caixin PMI prints. The official Manufacturing PMI in March increased to 51.8 from 51.6 in the month prior and beat a forecast of 51.7. Compared to the official gauge, the Caixin PMI measures smaller-sized companies that are usually more sensitive to economic cycles. As a result, if these smaller manufacturing firms have not shown sustainable improvements, it indicates that the economy may still face some major challenges. Based on the data that has already been released, this is likely to be the case, and in turn, will not provide much support to Yuan rates.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.