The US has removed China from the list of “currency manipulators” ahead of the signing of the phase one trade deal this week and the Chinese Yuan has strengthened further this morning to 6.8754. Chinese import/export data out today was better than expected and markets appear to be moving to risk-on sentiment.
The Dollar DXY index is steady this morning with the greenback at 1.1137 against the Euro and 1.2995 against the Pound. The Rand slipped to 14.4700 yesterday but is firmer this morning at 14.3915. The 14.5000 technical level is holding for now and we expect a range of 14.3000/14.4500 today.
Wall Street recovered yesterday with the S&P closing up 0.70%, the Dow up 0.29% and the Nasdaq up 1.04%. Chinese stocks are trading weaker today but the Nikkei has gained 0.65%. The JSE All Share closed 0.15% in the red with the Financial sector limiting further gains as it fell 0.84%.
The positive risk sentiment has pushed Gold down to $1 538.70 in the Far East today while Platinum and Palladium are fairly steady at $969.80 and $2 135.20 respectively. US CPI data will be released later this afternoon.
By Andre Botha, Senior Currency Dealer, TreasuryONE