Forex – The yuan under pressure, the markets remain anxious

The yuan under pressure, the markets remain anxious

The Yuan was under pressure on Thursday, as investors remain worried about the economic prospects of the country because of the uncertainty with the United States on trade issues.

The pair USD / CNY is trading at 6,6159 at 12h58 (04h58 GMT), up 0.2 per cent higher than the previous closing.

The yuan has slipped in each of the last six trading days, bringing it to its lowest level since December 2017.

The white House said that it would not seek to impose the new limits to companies owned at least 25% by China and who are interested in partnering with u.s. companies related to the technology, as reports had suggested earlier in the week. Instead, the government would appeal to the Committee on foreign investment in the newly enhanced in the United States, or CFIUS, to address its concerns.

However, the economic adviser to the us president, Donald Trump, Larry Kudlow, said Wednesday that the president does goes not to China.

During this time, a reflection group is supported by the chinese government has warned of a “financial panic” potential in a report.

The national institution for finance and development (NIFD) of China stated that the purchase of shares with leverage effect have now reached levels that have been observed in 2015, when a stock market crash wiped out $ 5 trillion of value.

“We think that China is very likely to see a financial panic,” said the NIFD in his study, which appeared briefly on the Internet before being removed. “To prevent its spread should be the priority of our financial regulators and macroeconomic. “

Alan Ruskin, a strategist specializing in market exchange within the Deutsche Bank, said that it is not certain that the drop is completed. “Let’s see how this unfolds over the next 24 hours,” he said.

The dollar index, which tracks the greenback against a basket of currencies, remained unchanged at 95,02.

Elsewhere, the USD / JPY pair slipped 0.07% to 110,20 while the markets remain cautious about the announcement by the administration to Trump measures apparently less severe on chinese investments.

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