Magazine

U.S.-China Trade Deal Doubts Lift Yen, Hamper Yuan

Posted on the 14 November 2019 by Merks50

By Hideyuki Sano

TOKYO (Reuters) - Doubts that securing a trade agreement between the United States and China is far from a done deal helped to lift safe-haven currencies such as the yen and the Swiss franc on Thursday, while pulling the yuan lower.

U.S.-China trade negotiations have 'hit a snag' over farm purchases, with Beijing not wanting a deal that looks one-sided in favor of the United States, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The report came after U.S. President Donald Trump said a trade deal with China was "close," but offered no details and warned that he would raise tariffs "substantially" on Chinese goods if there was no deal.

An agreement last month between the two economic powers to sign a "phase one" pact to end their trade war boosted optimism in global financial markets, lifting the yuan and other risk-sensitive currencies.

"If Trump takes a hard line, emboldened by the latest strength in stock markets, and refuses to make some concessions to China, there will be risk an agreement cannot be reached at the last minute," said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities.

The yen firmed to 108.80 yen per dollar , having risen to as high as 108.66 in previous U.S. trade.

The Japanese currency, often used as a safe-haven asset because of Japan's status as the world's largest net creditor nation, has hit a five-month low of 109.49 a week ago.

The yen hardly budged after Japan's GDP data showed the economy grew an annualized 0.2% in July-September, much below economists' forecast of 0.8%.

The Swiss franc has been firm, having risen almost 0.6% over the last two days against the euro, to hit its highest level in more than a month.

The franc traded at 1.0895 per euro (EURCHF=), near Wednesday's peak of 1.0879. Against the dollar, the franc stood at 0.9898 per dollar .

The offshore yuan traded at 7.0292 yuan per dollar , retreating since it hit a three-month high of 6.9530 last Thursday.

China's retail sales and industrial production data due later in the day (0200 GMT) is a key focus for markets.

The Australian dollar shed a half percentage point to one-month low of $0.6802 after weak employment data showing the first fall in payrolls in three years.

The euro stood at $1.10075 (EUR=), having touched one-month low of $1.0995 in U.S. trade.

Sterling was little moved at $1.2857 , stuck in a tight range this week, in a limbo ahead of a Dec. 12 election.

A poll carried out for the Daily Telegraph newspaper showed British Prime Minister Boris Johnson's Conservatives have a healthy 10-point lead over main opposition Labour.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • 5 Self Care Tips for When You Feel Helpless

    Self Care Tips When Feel Helpless

    Image: SosatographyThere have been several times this past year that I have felt helpless. It’s a terrible, dilapidating feeling, of wanting to better, or rid... Read more

    By  A Mused Blog
    FASHION, HAIR & BEAUTY, HEALTH, LIFESTYLE
  • Why The Thermal Inner Wear Is Cost-Effective?

    Thermal Inner Wear Cost-Effective?

    Winter wear is an essential one for people to stay warm and dry. The many garment material is available for the winter season. The purchasing thermal inner... Read more

    By  Wonderland57
    LIFESTYLE
  • 10 Insights For Locating The Perfect Business Mentor

    Insights Locating Perfect Business Mentor

    Every entrepreneur can learn from a mentor, no matter how confident or successful they have been to date. Most people don’t know that billionaire Mark... Read more

    By  Martin Zwilling
    BUSINESS, CAREER
  • Lemon Splits

    Lemon Splits

    I've been pretty laid out with my back this past couple of weeks and have not really been cooking anything new for the most part. Read more

    By  Mariealicerayner
    FOOD & DRINK, RECIPES
  • Top 15 Best Wayback Alternative Websites 2020

    Best Wayback Alternative Websites 2020

    There can be numerous uses of it, some of them include, understanding competitor development, accessing deleted information and accessing content of a down... Read more

    By  Ssghtc001
    GADGETS, TECH
  • Noël Wells – ‘Still Sleeping’

    Noël Wells ‘Still Sleeping’

    Photo credit: Stevie Nelson Master of None and Saturday Night Live star Noël Wells has shared the video for ‘Still Sleeping’ from her debut record, ‘It’s So... Read more

    By  Spectralnights
    ENTERTAINMENT, MUSIC