Ahead of the model estimate for the People’s Bank of China USD/CNY reference rate some numbers bouncing around suggest it’ll head towards 7.3200.
Of course, the PBoC won’t set the rate anywhere near that, circa 7.18 is the betting.
The USD was strong on Monday US time., but its given some back on the gradual tariff news (read the posts, its just unattributed conjecture right now, but it is indicative that Trump is sensitive to slumping stocks and would like to avoid this):
- Trump’s tariff team studying gradual hikes of 2 to 5% per month
- USD losing ground on the ‘gradual’ tariff story
Will be happy for the breathing space
This article was written by Eamonn Sheridan at www.forexlive.com. Source