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CNY touches lowest in a decade as Trump.......>

FOREX
FOREX: CNY touches lowest in a decade as Trump threats unnerve onshore trading
-Trump's threat of further Chinese import tariffs as soon as the end of the year
undermined US equities yesterday and sent the CNY lower in Chinese onshore FX
trading Tuesday. As a result USD/CNY touched Cny6.9714, the highest rate since
2008, and puts the pair on course to test Cny7.00 in the coming months. USD/CNY
managed to pullback somewhat ahead of the European open, however, as Trump
clarified that he would like to make a deal "right now".
-Trump's clarification prompts JPY to be the weakest currency in G10 today,
allowing USD/JPY to sit just shy of Y113 and helping AUD climb against all
others. Meanwhile, EUR/GBP retook the GBP0.89 level, taking some steam out of
GBP/USD which extended losses to a two month low. EUR/GBP price action suggests
month-end demand could be at play.
-US consumer confidence numbers are the data highlight, with German CPI also
due. Regional inflation figures so far support expectations of a lower M/M
reading, but a higher Y/Y figure. Earnings from General Electric, MasterCard,
Pfizer, Coca-Cola and Facebook also cross.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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