The dollar is up a little as we get into European morning trade, with a lack of any real catalysts. EUR/USD is now down nearly 0.3% to 1.0685 while USD/JPY is inching up to 159.90 currently. The greenback is keeping on firmer footing and I would argue that is in part helped by a continued rise in USD/CNY:
Chinese authorities had previously kept a lid on the onshore yuan, preventing a drop beyond 7.25 against the dollar. But they appear to be relaxing that in the last two weeks, with the yuan now falling to its lowest since November last year.
That’s a headwind for emerging market currencies in general and in turn, is an indirect boost for the dollar at least. So, do keep an eye out on things here when viewing the dollar’s performance against the majors as well.
This article was written by Justin Low at www.forexlive.com.
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