Forex: The Dollar is changing in a narrow range until the NFP

© Reuters. – The dollar was little changed against the major currencies since the start of trade in Europe on Friday, but rose against the chinese yuan after the governor of the chinese central bank has hinted that he could let the currency depreciate.

The greenback has stabilized in a narrow range prior to the publication of the report NFP on the labour market in the United States at 14: 30, which will clearly indicate at what point the u.s. economy is slowing under the pressure of the escalation of disputes tariff with China and Mexico.

At 10: 30 am, the euro was 1,1263 USD fell slightly after the announcement of a fall in a surprisingly German industrial output in April.

The dollar index, which measures the greenback against a basket of six major currencies, remained unchanged at 97,012.

During the night, the governor of the people’s Bank of China, Yi Gang, said to Bloomberg that “no figure is more important than any other” in regard to the exchange rate of the yuan, and analysts have assumed that the central bank will not do everything possible to prevent it from falling below 7 for a dollar.

“The risk that the yuan breaks 7 has grown in tandem with the escalation of the trade war and the prospect of prolonged stress,” said Christy Tan, a strategist at National Australia Bank, cited by Bloomberg.

The euro was little changed compared to there are a day after the European Central Bank has sent a message that is nuanced in its last monetary policy meeting. The ECB has seemed to exclude again reduce the interest rates with its forecast in its initial declaration, but the outgoing president, Mario Draghi, repeated that she had nothing excluded – including the resumption of quantitative easing – if the economy slows down more. His comments were quickly cancelled the gains made initially by the euro.

The british pound was 1,2712$, showing little change compared to Thursday evening. The governor of the BoE, Mark Carney, pointed out to markets that interest rate hikes were still current as soon as the uncertainty surrounding the Brexit would dissipate. In spite of all, the comments were clearly less dovish than those of Draghi.

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