U.S removes currency manipulator label from China

Daily Analysis - 14/01/2020

Trade deal looks promising

currency-manipulation


The United States in a very positive move excluded China from a list of countries recognized as currency manipulators. The move came only two days before the important trade negotiations between the U.S and China to approve a key “phase one” trade deal, according to an announcement from the Treasury Department published yesterday. The decision to exclude China from the currency manipulator record occurred five months following the Treasury Department declaring China as a currency manipulator. President Donald Trump and China Vice Premier Liu He are set to confirm an introductory trade deal in Washington tomorrow.

Gold fell to a 14-day low


On Tuesday the popular yellow metal Gold dropped to its weakest level in almost 14-days while risk desire was stopped by stronger-than-expected China economic numbers and the following signing of an introductory U.S.-China trade arrangement. U.S. gold futures dropped 0.7% to $1,539.69. Spot gold dropped 0.6% to $1,538.83 per ounce. Earlier in the day, prices reached their weakest level since Jan. 3 at $1,535.74.

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Banks earnings announcements today


On Tuesday morning the U.S. stock index futures moved slightly on the weaker side before bank earnings.

Early morning, Dow futures dropped about 8 points, registering probably a negative start of more than 5 points. Futures on Nasdaq and the S&P also fell. Traders will be watching earnings with some of the largest banks officially opening the latest series of corporate announcements. Wells Fargo, J.P. Morgan Chase, and Citigroup are going to release their reports before the opening.

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Yen is losing ground


On Tuesday the famous safe-haven Japanese yen dropped to an eight-month low. On the other hand, China’s yuan rose to its most powerful level since last summer, while the U.S. Treasury Department canceled its decision to label China as a currency manipulator.

The report came while Chinese Vice Premier Liu visited Washington before the signing of the phase one deal with the U.S. President Donald Trump, and was intended to ease the pressures between the two super economies.

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