The US Dollar was modestly stronger overnight. Against the Euro, it was almost unchanged at 1.0885, with the single currency being supported by the unwinding of EUR/Emerging Market carry trades. Sterling gave up its gains, falling 0.85% to 1.2895. Its support eroded by the seemingly intransigent negotiating positions of the UK and Europe ahead of trade talks starting next week. USD/JPY continued to hover around the 110.00 marks as Yen haven flows abated. With 109.50 looming as the next important support.
Over in EM, the offshore and onshore Chinese Yuan continues to be strangely quiet. Onshore Yuan has spent most of this week around 7.0150 offshore Yuan has actually quietly gained against the greenback. USD/CNH falling from 7.0600 to 7.0240. Part of this may be explained by the relatively narrow ranges of the US Dollar against the majors in recent days. The reduction in the number of daily infections in China may also be giving hope that the worst is behind the Mainland. As China returns to work, time will tell. USD/CNH though, has traced out a triple top around 7.0600 that will be challenging to break.
Over in EM, the offshore and onshore Chinese Yuan continues to be strangely quiet. Onshore Yuan has spent most of this week around 7.0150 offshore Yuan has actually quietly gained against the greenback. USD/CNH falling from 7.0600 to 7.0240. Part of this may be explained by the relatively narrow ranges of the US Dollar against the majors in recent days. The reduction in the number of daily infections in China may also be giving hope that the worst is behind the Mainland. As China returns to work, time will tell. USD/CNH though, has traced out a triple top around 7.0600 that will be challenging to break.
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