The Chinese yuan spearheaded Asian currencies' climb in value against the world's reserve currency on Tuesday as the renminbi rose after scraping its lowest value since late 2012 last week, according to Bloomberg.
Market sentiment indicated the yuan's recent slippage was overdone. The People's Bank of China pulled down the daily exchange rate by 0.01 percent. The currency's recent volatility is expected, Payment Balance Department Head Guan Tao with the State Administration of Foreign Exchange stated in a column in a trade publication.
"It appears to be a fairly constructive outlook for Asian currencies in the near term," states a Tuesday client note authored by Scotiabank, according to Reuters. "We feel that MYR, KRW and PHP should certainly benefit, and believe that there is definite value in being long CNH at current levels considering that the market seems resistive to pushing too far past 6.25 in the topside in USD/CNH."
The yuan rose roughly 0.32 percent against the greenback on Tuesday after climbing about 0.22 percent against its rival on Monday.
The yuan also climbed after data noted the U.S. services sector developed in April at its quickest pace in eight months, according to Reuters.
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.