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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
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
Wall Street
More View more
Real Time News
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/JVz5hswMHp
  • Gold Price Outlook: XAU/USD Pullback in Play – Charts to Watch https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/07/11/gold-price-outlook-xau-usd-pullback-in-play-charts-to-watch.html
  • Coronavirus continues to spread rapidly in the US and Latin America causing risk sentiment to falter despite ongoing economic recovery. Get your #currencies update from @HathornSabin here: https://t.co/RCQR6z77qY https://t.co/E2jzemH6bQ
  • The ASX 200 and AUD/JPY are at risk of losses as cases of Covid-19 continue to climb in Victoria, Australia’s second-most populous state. Get your #ASX market update from @DanielGMoss here: https://t.co/O0LNvhgsQo https://t.co/Xq2lDE6s1T
  • Risk performance disparity is front and center while systemic issues meet key event risk. My trading video for the week ahead; '#Dow, $EURUSD, $GBPUSD Breakout Levels and Events Next Week' https://www.dailyfx.com/forex/video/daily_news_report/2020/07/11/Dow-EURUSD-GBPUSD-Breakout-Levels-and-Events-Next-Week.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/1Fp5OxRbiS
  • This week, EUR/USD rallied to a multi-week high. Will bulls keep leading the price next week? Get your #currencies update from @malkudsi here: https://t.co/zUozw703uC https://t.co/LIEcx52Xh0
  • The New Zealand Dollar is aiming higher, with NZD/USD eyeing fresh yearly highs while AUD/NZD may be carving out a bearish Head and Shoulders chart pattern. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/osFxXvq5xF https://t.co/Uk2RhkEyQO
  • A plethora of UK data, however, external factors remain the key driver as GBP/USD edges towards 200DMA. Get your #currencies update from @JMcQueenFX here: https://t.co/bWJGyiUSpQ https://t.co/qAg8NrAZor
  • The Japanese #Yen may rise if a growing number of coronavirus cases around the world puts a premium on anti-risk assets. JPY’s gains may be amplified if corporate earnings fail to impress investors. Get your #currencies update from @ZabelinDimitri here: https://t.co/yP4revKq6J https://t.co/7smgRKspLU
  • The US Dollar index (DXY) may face range bound conditions over the coming days amid the failed attempt to test the June low (95.75). Get your #currencies update from @DavidJSong here: https://t.co/GsBcE6Z4G6 https://t.co/HIJ4vvcBIg
China's PBOC Seeks to Calm Yuan, Equities ahead of US Tariff Deadline

China's PBOC Seeks to Calm Yuan, Equities ahead of US Tariff Deadline

2018-07-04 18:17:00
Renee Mu, Currency Analyst

China Calms Yuan, Equities - Talking Points:

  • Five PBOC officials commented on the Yuan and equities to boost market confidence.
  • Chinese securities, banking and insurance regulators met to cope with financial risks.
  • Capital outflows from China through stock links saw increases after the equity plunge.

Chinese regulators have been trying to calm the volatile Chinese market, with both equities and the Yuan plunging over the past two weeks. In specific, five China Central Bank’s (PBOC) officials have commented in a row on the market, ahead of July 6, when the US tariffs on $34 billion Chinese goods will take effect.

Following the remarks, the Chinese Yuan (CNH) rebounded on Wednesday, after dipping more than 1000 pips against the U.S. Dollar within two days, and more than 2000 pips in total since last week; Shanghai Composite Index continued to drop, though failed to break below the previous swing low.

Here are what the top Chinese policy makers said and did, in the effort to boost the market confidence:


PBOC Governor Yi Gang told on July 3 that “we have been closely following recent moves in the FX market, which were largely driven by a strong Dollar and external uncertainties. The regulator will keep the Yuan relatively stable and at reasonable levels”.

The Governor also commented on Chinese equites on June 19, saying that “the volatility was mainly led by sentiment; investors should stay rational and calm”.

PBOC Deputy Governor and SAFE’s Chairman, Pan Gongsheng, said on July 3 that “China’s foreign reserves are sufficient. Policymakers are confident to maintain the Yuan basically steady”.

The Head of PBOC’s Financial Research Institute, Sun Guofeng, told that “China will not use the Yuan as a weapon in the trade conflicts with the US. Yuan’s recent devaluation was due to changes in market expectations amid rising external uncertainties, rather than intended guidance of the Central Bank”. Sun provided the above comments on July 3 in response to Bloomberg’s inquiry.

A Review:US-China Trade War: An Inevitable Conflict and The Impact on Equities, FX

PBOC Senior Advisor Sheng Songcheng said that market participants “should not read too much into Yuan’s recent decline. It was largely driven by sentiment.” Also, he called for “a rational view towards US-China trade disputes”. “The United States’ trade protectionism is not just against China, but to many other countries. Yet, the history shows that the global economic development will need to rely on cooperation and collaboration between countries.”

Read DailyFX’s guide to A Brief History of Trade Wars, 1900-Present

PBOC’s Monetary Policy Committee Member Ma Jun told on July 3 that “regulators will avoid to use excessive measures to cut debt in the economy”. Reducing leverage became a regulator’s focus in late 2016 and was then set to be a top national priority in 2017. Tightened liquidity and fears around de-leveraging are considered to contribute to the aggressive selling in Chinese equities recently.

PBOC announced to cut reserve requirement ratio (RRR) by 0.5% on June 24, which is expected to add 700 billion yuan to the market and ease concerns on the liquidity shortage. Specifically, the PBOC targets at accelerating the pace of debt-to-equity swaps and increasing lending to small-sized firms. The measure will come into effect on July 5, one day before the US tariff deadline.


China’s top policymakers met at the cabinet-level Financial Stability and Development Commission (FSDC) on July 2,to cope with the country’s internal and external financial risks. This is the first time that new committee members met together:

China’s Vice Premier Liu He is the Chairman. Liu is the premier who oversees the country’s financial sector; he is also the leader on China’s end in the US-China trade negotiations.

Committee members include chairmen from the following state agencies: PBOC (the central bank), China Securities Regulatory Commission (the securities regulator), China Banking and Insurance Regulatory Commission (the banking and insurance regulator), SAFE (the FX regulator).

The policymakers said in a statement that “China is capable and confident to prevent systematic risks. Multiple departments will collaborate to deal with them. Overall, the risks are under control.”

Download a free trading guide to improve your knowledge of trading the news, and learn about the top trading opportunities in the third quarter of 2018.


Capital outflows from China have seen increases amid the falling Chinese stock prices. The Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect are two major channels for foreigners to invest in Mainland China.

Chart showing Capital Flows through Mainland-Hong Kong Stock Connects vs Shanghai Composite Index

China's PBOC Seeks to Calm Yuan, Equities ahead of US Tariff Deadline

Chart prepared by Renee Mu; Data downloaded from Bloomberg and Eastmoney.

Since June 19, when Chinese equities began to plunge, overseas investors began to reduce their holdings in the Yuan-denominated assets. This reversed the capital-inflow trend, driven by A-shares’ official inclusion in MSCI indices and started in early April.

A rise in capital outflows coupled with falling equity prices is not uncommon for China. In early February, Shanghai Composite Index tumbled; investment withdrawals through the stock links jumped as well.

-- Written by Renee Mu, Currency Analyst with DailyFX

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


News & Analysis at your fingertips.