The Chinese yuan climbed to week highs against the world's reserve currency on Tuesday after the central bank of the Asian nation raised the daily reference rate for a second-straight day, according to Bloomberg.
Speculation mounted that China is poised to implement additional measures to foment economic growth and development in the midst of the slowdown. The People's Bank of China boosted the reference rate by 0.04 percent. Thus far this year, the yuan has lost roughly 2.1 percent against the greenback and the release of weaker manufacturing data on Monday did not help.
"The data was pretty bad. It looks almost certain that the first quarter growth is likely to fall short of the government's growth target of 7.5 percent," president Naoki Tashiro with T.S. China Research told Reuters on Tuesday. "So the government is likely to take some measures, as it has done a few times in the past year, to support the economy."
The renminbi pushed ahead about 0.14 percent against the U.S. dollar on Tuesday.
Chinese policy steps to confront the slowdown are likely to be moderate, some analysts told Reuters.
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.
