Forex - Yuan Slips After Weekend Souring of U.S.-China Relationships


The Yuan slipped while the dollar edged up on Monday as US-China relations soured over the weekend.

The USD/CNY pair traded 0.1% higher to 6.9445 by 12:01 AM ET (05:01 GMT).

Leaders of the Asia-Pacific Economic Cooperation (APEC) failed to agree on a communiqué for the first time in history, according to reports over the weekend.

Papua New Guinea Prime Minister Peter O’Neill, who was chairman of the meeting, said “the two big giants in the room” were the two members of the APEC that could not agree.

O’Neill added that Beijing and Washington could not agree on whether “World Trade Organisation and reform of the World Trade Organisation” should be in the Leaders’ Declaration.

U.S. President Donald Trump did not join the meeting as Vice President Mike Pence attended instead of him.

The U.S. dollar index that tracks the greenback against a basket of other currencies edged up 0.1% to 96.5.

Richard Clarida, the Federal Reserve’s newly appointed vice chair, expressed caution over the global growth outlook on Friday and said "that's something that is going to be relevant" for the outlook for the U.S. economy.

Federal Reserve Bank of Dallas President Robert Kaplan also said in a separate interview with Fox Business that he expected a growth slowdown in Europe and China.

Elsewhere, the USD/JPY pair was little changed at 112.75. Japan’s Ministry of Finance showed the country’s exports rose 8.2% in October from the same period last year, compared to the expected 9.0% increase.

Official data revealed last week showed Japan’s economy shrank more than expected in the third quarter due to natural disasters and sluggish exports.

The AUD/USD pair and the NZD/USD pair were down 0.3% and 0.5% respectively.

The British pound received some residual focus after having come under heavy selling last week amid uncertainties over U.K. Prime Minister Theresa May’s draft Brexit plan.

The GBP/USD pair last traded at 1.2824, down 0.1%.

Source: www.investing.com