By: Barbara Zigah
The “official” rhetoric regarding the possible appreciation of the Chinese Yuan continues while market players’ belief of the same receded. At Sunday’s meeting of Asia Pacific Economic Cooperation (APEC) leaders, China and the United States continued to squabble over foreign exchange rates, effectively putting to bed any expectation that the Yuan might be allowed to appreciation in tandem with the U.S. President’s upcoming visit to Beijing.
One treasury manager from a bank in Japan confirmed that there is no speculative trading as a by-product of the U.S.-China meetings. The unexpected increase in September of the trade gap between the United States and China also brought about criticism from U.S. President Obama, who commented that a further crisis situation would ensue if the global economies were not soon rebalanced.
As reported at 2:41 a.m. (JST) in Japan, the U.S. Dollar Index, a gauge of the greenback’s value versus a basket of six major currencies, slipped to 75.042 .DXY, a decline of .4%, continuing the drop from last Friday’s trading day when weaker-than-expected consumer sentiment information was released from the U.S. Markets are waiting to see if October’s retail sales data, which will be released later today, will help to boost investor appetite for risk. It is expected that sales will show an increase of .9% for October, as compared with the 1.5% decline the previous month.
Chinese Yuan Rhetoric Heats Up while U.S. Dollar Index Falls
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.