Forex - Yuan Edges Down Amid Conflicting Sign on Trade War; Pound Flat

Published 05/24/2019, 12:30 AM
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Investing.com - The Chinese yuan edged down against the U.S. dollar on Friday in Asia, while the pound traded flat despite reports that U.K. Prime Minister Theresa May might resign within the next day or two.

The USD/CNY pair edged up 0.1% to 6.9122 by 12:28 AM ET (04:28 GMT) amid conflicting signs on the ongoing Sino-U.S. trade war.

U.S. President Donald Trump said earlier in the day that he predicts a “fast” trade deal with China, but did not provide any evidence to back up his statement.

“It’s happening, it’s happening fast and I think things probably are going to happen with China fast because I cannot imagine that they can be thrilled with thousands of companies leaving their shores for other places,” Trump said during remarks at the White House.

On the other hand, China’s Ministry of Commerce warned the U.S. on Thursday to act with “sincerity” and change its “wrong actions” before trade negotiations could resume.

The GBP/USD pair was little changed at 1.2658. The pair was volatile this week amid reports that U.K. Prime Minister Theresa May might soon resign as her party has made it clear they do not agree with her Brexit plan.

The pound began to slide on Wednesday after Andrea Leadsom, the lawmaker tasked with organizing in the government’s business in the House of Commons, resigned and said she no longer believed the government’s approach.

"I do not believe that we will be a truly sovereign United Kingdom through the deal that is now proposed,” Leadsom wrote in her letter to May. "I have always maintained that a second referendum would be dangerously divisive and I do not support the government willingly facilitating such a concession."

The U.S. dollar index last traded at 97.738, up 0.02%. It was near a one-month high on Thursday as an unexpected decline in the number of people filing for unemployment assistance last week helped it maintain momentum.

Data on Thursday showed that the labour market is gaining strength, even as the economy slows. Initial claims for unemployment benefits fell for the third straight week to a seasonally adjusted 211,000, the Labor Department said.

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