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 Japanese Yen sold-off during the Asian trading session as forex traders booked floating trading profits and with the Bank of Japan debating how and when to weaken its currency in order to assists its export dependent economy. The US-China trade war escalated further, but Singapore industrial production for July surprised to the upside. The EURJPY was able to bounce off of a strong support level, but is this just a temporary advance or will forex traders push this currency pair further to the upside? Follow the PaxForex Daily Fundamental...
Over the weekend, as the G7 summit began in France, the trade war between the US and China intensified. China retaliated to the planned US tariffs in kind, and US President Trump vowed to increase all existing tariffs by 5%. As the global economy continues to cool, New Zealand reported a bigger-than-expected trade deficit for July. This was due to the surge in imports while exports remains nearly unchanged from June. The New Zealand Dollar remained stable as export figured were a sigh of relive for forex traders and the NZDUSD rebounded inside...
The economic calendar during today's Asian session was pretty tight. The indicators of retail sales in the 2nd quarter from New Zealand and inflation data for July from Japan provided the direction of national currencies of these countries.
All eyes will be in the Jackson Hole Symposium which kicked-off yesterday. Given the current market dynamics as well as expectations, it is almost certain that US Fed Chief Powell will disappoint the markets. It is widely anticipated that he will guide towards an interest rate cut in September, but some Fed officials cautioned that such a move should not be viewed as guaranteed. A conflicting message is likely to send markets lower and push traders into safe have assets such as gold and silver. Can silver attempt a breakout above resistance...
