Chinese Yuan Gains Against the US Dollar Over Continued Optimism For Phase One Trade Deal
Arslan Butt • 1 min read
Early on Monday, the Chinese yuan is trading close to a six-month high against the US dollar over continued optimism about the signing of the phase one trade deal even as China gets ready for its New Year holidays soon. At the time of writing, USD/CNH is trading around 6.852.
Expect volatility to remain on the lighter side today in the wake of a holiday, Martin Luther King day, which will keep US markets closed on Monday. Trading volumes also remain thin on the Chinese side as the long holiday for the Chinese New Year comes closer.
The mood in the markets remains upbeat despite China’s economic growth having slowed to a near-three decade low in the last quarter. Meanwhile, the US economy has been posting some strong figures lately, which have served to support the US dollar. Despite this, the Chinese yuan gained around 0.2% against the dollar as markets look forward to an improvement in US-China trade relations.