Friday saw the Chinese yuan drive toward a ninth consecutive bullish week against the U.S. dollar, Bloomberg reports.
The strong performance of the monetary unit of the world's second-largest economy against the currency of the globe's largest economy during the past two-plus months represents the longest trend since late last year. The central bank of China on Friday reduced the daily fixing rate by 0.11 percent after increasing it by 0.2 percent one day prior.
"The authorities haven't acted yet which shows that there is not an extreme concern that the appreciation of the renminbi will have a strong impact on the economy. We are not at the stage of intervention yet," chief economist Alistair Thornton with consulting firm IHS Global Insight told CNBC on Friday.
Financial and capital-account surplus rose during this year's first quarter in the Asian nation, Bloomberg reports.
That policy makers with the People's Bank of China are deploying increased daily guidance for the yuan against the dollar demonstrates the strong confidence they hold for the prospects of the economy they support, according to CNBC.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
