Argentine Peso having a rough day. An 18% devaluation to 350 pesos per dollar (chart) accompanied by a 21 percentage point hike in interest rates to 118% …
Source: Barchart
The Euro is now overvalued against the Dollar for the 1st time in 2 years, says the Big Mac index.
Source: The Economist
China's currency regulators are asking some commercial banks to reduce or postpone their purchases of U.S. dollars
That is in order to slow the yuan's depreciation, two people with direct knowledge of the matter said. The informal instruction, or the so-called window guidance, is the latest in a series of steps taken by authorities this year to bolster a currency that has been hit by China's faltering post-pandemic economic recovery and rising yields for the U.S. dollar and other major currencies. Source: Reuters
In case you missed it -> The Yuan exceeds dollar in China's bilateral trade for first time
The yuan was used in 49% of China's cross-border transactions last quarter, topping the dollar for the first time, a Nikkei analysis shows, mainly due to a more open capital market and more yuan-based trade with #Russia. Nikkei looked at international trade by companies, individuals and investors based on currency, using statistical data from the State Administration of Foreign Exchange of China. Nikkei's compilation does not include yuan-based settlements for trades and capital transactions that do not involve China as a counterparty. Source: Asia Nikkei
EURCHF tumbled today as the Swiss Franc saw demand ahead of The Fed and ECB.
The swissy is the strongest vs the euro since Sept 2022 (with the biggest strengthening of CHF vs EUR since January today)... Source: Bloomberg, www.zerohedge.com
Traders are boosting their bets against the US dollar.
Source: The Daily Shot
Most Expensive Euro on Record Has Traders Braced for Declines
As the Nominal effective exchange rate reached an all-time high, a dovish message from ECB this week can add pressure on the euro. Source: Bloomberg
New bulls entering the EURUSD market
EURUSD has broken through strong resistance that has capped advances all year at 1.1080/90. Last week the push higher saw a close at 1.1245, indicating new bulls entering the market and potential for the currency to enter a new range.
Looking ahead, we should see a support around 1.1090/1.1100. On the upside, we might go back to today's high of 1.1276 and potentially to 1.1590, the 76% Fibonacci line from 2021.
Source: Santander & Bloomberg
