Euro edges higher, yuan gains as trade concerns linger


Euro edges higher, yuan gains as trade concerns linger

The currency hit to an eleventh month low today after it fell almost 1% against the USA dollar in early trading, and recovered to gain 0.3%.

But a July 6 deadline is looming for Washington to impose tariffs on $34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on U.S. products.

Software shares posted strong performance, with Yuanguang Software Information Co., Ltd rising 3.56 percent to close at 8.72 yuan.

"Notwithstanding the trade war concerns, the broader picture is the US central bank still remains the most hawkish central bank among its peers and that should support the dollar for now", said Jane Foley, senior currency strategist at Rabobank.

Major Asian markets are lower for the year.

The Hong Kong stock market on Tuesday wrote a finish to the two-day winning streak in which it had advanced nearly 600 points or 2.1 percent.

The onshore yuan opened at 6.6365 per dollar, after hitting 11 month low of 6.7294 on Tuesday. It sharply depreciated by 3.3 percent in June, the largest monthly drop ever.

"The euro is getting a bit of a lift on the German data though the trade concerns will continue to dominate markets with the Fed minutes being the key data point", said Kenneth Broux, a currency strategist at Societe Generale in London. Traders and economists say major state-owned banks sometimes act on behalf of the central bank in the foreign exchange interbank market. President Donald Trump also threatened on Monday to "do something" if the United States was not better treated by the World Trade Organization.

He acknowledged that in a trip to Shanghai last week, he "detected increasing alarm over trade tensions and a lot of nervousness about a full-blown trade war, which comes at a bad time for China, where the economy is undergoing a downdraft at precisely the same time the United States is seeing a sharp upturn".

"Both the euro and the dollar benefit because both are seen as safe havens".

Shenzhen-listed BOE's revenue grew 36 percent year on year to 93.8 billion yuan (US$14.4 billion) in 2017. Japan's Nikkei edged to a near three-month closing low.

Stock markets in Europe and the United States advanced on Thursday, offsetting more losses in Asia as investors were encouraged by economic data from Germany and a report that its big carmakers could be spared from USA tariffs.

RBA Governor Philip Lowe said "one uncertainty regarding the global outlook stems from the direction of worldwide trade policy in the United States", cautioning that the recent U.S.

The Aussie dollar came off a 1-1/2-year low of $0.7311 plumbed overnight, fetching $0.7368.

The lead from Wall Street is negative as stocks failed to sustain an early upward move in Tuesday's abbreviated session, finishing in the red ahead of the July 4 holiday.

USA crude oil futures climbed above the $75 mark for the first time in 3-1/2 years overnight and hovered near that level on Wednesday.