The Chinese yuan reached an 11-year low in continental trade and fell to a record low in offshore after a sharp escalation of the US-China trade war, which undermined investor confidence and overshadowed global economic prospects.
The Chinese yuan reached an 11-year low in continental trade and fell to a record low in offshore after a sharp escalation of the US-China trade war, which undermined investor confidence and overshadowed global economic prospects.
In the Chinese continental market, the yuan fell to 7.1500 per dollar, the lowest since February 2008. In the offshore market, the yuan fell to 7.1850, which was the weakest level since the start of international trading of this currency in 2010.
At the G7 meeting in France over the weekend, US President Trump caused some panic among investors, pointing out in his speech a desire to introduce additional duties against China.
The White House clarified these comments on Sunday, saying Trump had just expressed his personal desire to raise tariffs on Chinese goods. However, this was enough to unbalance financial markets.
At today's Asian trading session, the benchmark yield on 10-year US Treasury bonds fell to 1.4560%, the lowest level in three years. The yield on 2-year debt decreased to 1.4568%.
The Japanese yen, often bought as a safe haven, rose briefly to its maximum against the dollar. Dollar purchases from Japanese importers raised USDJPY from lows. According to economists, the Japanese currency will continue to grow. At the moment, the pair is trading down at the level of 105.20.
Gold reached its highest level since April 2013 - $ 1,554.56 per ounce.
Turkish lira and emerging Asian currencies have also fallen as investors again run into safer assets. Lira weakened by about 1% to more than 5.8 against the dollar on Monday after a brief fall to 6.47, what market watchers called a “sudden collapse” when Japanese investors cut risky assets.
The Australian dollar, a liquid indicator of risk, fell by 0.3% to 0.6735 this morning. The previous level of $ 0.6690 was within the recent decade low of $ 0.66775. In relation to the yen, the Australian briefly fell to 69.97 yen, the lowest since April 2009.
The New Zealand dollar fell to $ 0.6342, a minimal level since September 2015.
The EURUSD pair is trading with a slight increase at the level of 1, 1149.
GBPUSD: Sell. Entry point – 1, 2282. Take profit – 1, 2252. Stop Loss – 1, 2334.
AUDUSD: Buy. Entry point – 0, 6731. Take profit – 0, 6748. Stop Loss – 0, 6701.
USDJPY: Buy. Entry point – 105, 41. Take Profit – 105, 67. Stop Loss – 104, 96.
To receive new articles instantly Subscribe to updates.
