- Yuan Plummets While Dollar Remains Defensive After Trump Comments
The yuan slumped to a more than one year low in early Friday trading while the dollar also edged lower against its major peers after U.S. President Donald Trump expressed concern about the currency’s strength. In a CNBC interview with Trump on Thursday, the president stated that a strong dollar puts the United States at a disadvantage. The USD dropped against its peers in response to Trump’s comments. Meanwhile, the yuan slumped after China’s central bank set the daily midpoint for onshore trading lower for a seventh straight day.*
- What Lies Next For Bitcoin?
Bitcoin has rallied in recent weeks, climbing more than 30% after hitting a yearly low below $5,800. Yesterday, the world’s largest digital currency by market value had climbed roughly 30.9% from its June 24 lows of $5,785.43. However, experts provided mixed views on whether Bitcoin has finally broken its bearish trend. Current consensus is that BTC has bottomed out in June and it is finally leveling up. However, not everyone feels the same way about Bitcoin’s current direction, with some analysts asserting that we cannot yet call an end to the bearish trend that characterized the digital currency for several months.**
- A Promising Day For the Loonie
Friday’s economic calendar is entirely packed with Canadian economic data and events that can cause major volatility for the Loonie. Canada’s core CPI m/m figures are due to be released at 12:30 GMT today and it is important to note that Canadian inflation has been performing poorly, putting pressure on the BOC (Bank of Canada) to keep the policy accommodative. Today, the economists are expecting a neutral CPI figure of 0.1%. Core Retail Sales data is also due to be released at 12:30 (GMT) with a forecast of 0.6% vs. -0.1% beforehand. Since both of these are high impact events and are forecast to be positive (neutral/ better than expected), the Loonie is likely to remain supported.***
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*Source: Reuters Jul 20, 2018 12:48 am ET
**Source: Forbes Jul 20, 2018, 03:00 am GMT
***Source: FXLeaders Friday, July 20, 2018
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