Forex – The yen is advancing after chinese exports, the dollar declines

© Reuters. – The yen strengthened and the australian dollar depreciated on Monday after data showing that chinese exports fell unexpectedly in December, indicating further weakness in the world’s second largest economy and global demand declining.

The USD / JPY was down 0.42% to 108.08 at 02:51 ET (07:51 GMT).

Chinese exports fell unexpectedly in December, while imports were also down.

A separate report showed that China had recorded its largest trade surplus with the United States in 2018, which could encourage the president to Donald Trump to put pressure on Beijing in their trade dispute bitter.

The australian dollar and new zealand risk-sensitive risk have both fallen, with the AUD / USD down 0.39% to 0,7185 and NZD / USD losing 0.47 per cent to trade at 0,6798.

The two currencies have increased by about 1.5% against the dollar last week, while the risk sentiment improved in the face of the hopes for a trade agreement between the United States and China and the stimulus measures of the most energetic taken by the chinese policy-makers to support their struggling economy.

“Given the support that we have seen in the currencies related to commodities, it is reasonable to see a profit taking. I expect a resumption of the uptrend,” said Michael McCarthy, chief strategist of markets at CMC Markets.

The dollar was down slightly against a basket of other major currencies, as investors increasingly expect in addition to what the federal Reserve does not increase rates this year

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 95,21.

After an excellent year 2018, during which the greenback has gained 4.3 percent due to the rise in the rate of the american central bank on four occasions, investors now expect the Fed to end its policy of monetary tightening.

Market participants believe that the concerns related to the slowdown in growth to national and global, as well as a u.s. inflation is under control, will make the decision makers of the Fed is reluctant to increase borrowing costs in the largest economy in the world.

The Fed chairman Jerome Powell, reiterated last week that the u.s. central bank could be patient in terms of monetary policy given that inflation remained stable.

The data released on Friday showed that consumer prices in the u.s. in December dropped for the first time in nine months in December.

The euro has held up, with the EUR / USD to 1,1471.

The pound has fallen slightly, the GBP / USD falling to a low of 1,2832 at the beginning of this week that is expected to be very volatile.

The first minister Theresa May must win a vote in parliament on Tuesday to approve the agreement on the Brexit it could output chaotic Britain of the european Union. The figures are not favourable in May and his chances of winning the vote are extremely slim.

“The market is generally expected that the vote is not adopted by the Parliament. The british pound seems to have reached a ceiling at 1,2940 $, ” added Mr. McCarthy, of the CMC.

– Reuters contributed to this report.

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