Global economic stability remains fragile, with concerns over inflation, supply chain disruptions, the meteoric rise of AI and the uneven pace of recovery across regions.
The Offshore Chinese Yuan (CNH) is witnessing a revival today, as China appears to be intensifying its efforts to curb the currency's recent slump. Market participants view 7.25 level against Dollar as a significant psychological threshold to uphold.
In an otherwise lackluster Asian trading session, Chinese actions add a zing today. The rebound in Yuan, propelled by China's stepped-up measures to curb its slide, provided a boost to stock markets in both China and Hong Kong. The ripple effects are also being felt by Aussie and Kiwi, which are witnessing a bounce. Canadian Dollar also trades on the stronger side as investors await inflation data from Canada. Conversely, amid risk-on sentiment, Dollar, Yen, and Swiss Franc are trailing as the day's underperformers, while Euro and Sterling are trading mixed.
In today's trading, Euro takes the limelight, soaring broadly and reaching new heights against the frail Yen. While comments from ECB officials continued to be hawkish, there was basically nothing substantially new. The rationale propelling the shared currency is yet unclear. Following closely behind, Aussie and Kiwi mark themselves as the second and third strongest, respectively. Dollar, on the other hand, trails as the day's weakest performer, shadowed by Yen and Swiss Franc. Meanwhile, Sterling and Canadian Dollar deliver a mixed performance.
Dollar strengthens as investors await U.S. inflation data and Fed's interest rate decision. Canadian dollar surges after rate hike, while trade deficit widens.