The Yuan is recovering some of the ground lost earlier in the week against the Dollar, with both the onshore and offshore currencies up on the day by around 0.3%. This occurs as a result of the intervention of Chinese state banks, which reportedly have been tightening the supply of US Dollars, in an effort to support their own currency and prevent further devaluations.
This action can be interpreted as a calculated measure by the Chinese authorities, who earlier in the week fired a warning shot, allowing their currency to drop below the psychological level of 7 to the Dollar. For the moment, Beijing appears to be intent on stopping short of opening a new front in the trade conflict, by adding currency to the equation, but the tone has been set and further belligerence from the US side is likely to trigger further yuan devaluations.
Photo by Vitaly Taranov.
Has undertaken a number of senior roles in his current employer including running the international desk, responsible for managing sales, customer services and marketing functions for a number of territories, as well as acting as a regular public speaker at events and contributor to TV and other media through interviews and market analysis. Since November 2016 he has been the Senior Executive Officer (SEO) of ActivTrades Dubai branch, having overall management responsibility of the branch. Prior to joining ActivTrades Ricardo worked in the IT and Financial industries.
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© 2019 High Leverage FX - All Rights Reserved.