Somewhat surprisingly, the USD today relaxed against other currencies and allowed them to appreciate. The dollar is mostly suffering because of political tensions: the trade dispute between China and the United States is worsening, while at the same time President Trump is also coming under fire regarding the Russia investigation. The biggest winner today is the euro. After struggling for the last couple of weeks due to a lack of growth incentives, the European single currency managed to take on the dollar and climb up to $1.16.
Things also seem to be stabilizing in China. The People’s Bank of China recently added extra regulations to the market whose goal is to protect the yuan from the fallout of the trade war. As a result, the yuan is currently appreciating. This also helped Chinese stock markets to find more confidence and make gains. Moreover, the first trade data from China since the introduction of duties by the United States showed that trade is still going great for China and they still have a surplus with the US.
