US dollar is in a new selling wave, yet still gaining against the yuan
The US dollar entered a new selling wave during early trading in Europe. The currency is still in favour, as US-China tensions are still unresolved and Japan is headed for recession.
By 14:45 SGT the US Dollar Index was at 100.362, losing 0.1%. Earlier the index reached its highest level in three weeks. EUR/USD gained 0.1% and reached 1.0823.
On the weekend the tensions between the United States and China were reignited. Peter Navarro - the trade advisor for the White House - stated that Chinese authorities purposefully sent “hundreds of thousands” of people to other countries to spread the virus and was hiding the information about COVID-19 for at least two months.
Overall political tensions are directly impacting trade again. On May 15 the United States blocked chip deliveries to Huawei, hindering the launch of telecom’s behemoth 5G broadband.
Yuan, which is usually sensitive to economic conflicts, was on the retreat. USD/CNY gained 0.2% and stood ar 7.1128.