US President Trump: China is ’playing around’ with monetary policy

Ross J Burland FXStreet

US President Trump was crossing the wires saying that China is ’playing around’ with monetary policy, as he continues to make accusations that other nations and regions have manipulated their currencies to gain “unfair” competitive advantages.

The recent comment comes following prior comments where Trump has said that the U.S. needs a “fair playing field” against China’s weaker currency, which is nullifying the impact of tariffs.
Trump has said before that China’s president essentially heads the Chinese “Fed” and can directly impact monetary policy.

When looking to the yuan, it has weakened significantly since the end of June, just as the Fed has rubberstamped a rate cut for this month which has been weighing on the greenback. USD/CNH currently stands at 6.8789 vs the Dec 2016 high of 6.9861.

In every respect, it looks like the U.S. is on the verge of sparking a currency war while the trade war with China doesn't seem to be going Trump's way. Indeed, one could argue that the Federal Reserve has been yielding to pressure from the White House with its policy.

USD/CNH levels

USD/CNH

Overview
Today last price	6.8795
Today Daily Change	0.0027
Today Daily Change %	0.04
Today daily open	6.8768

Trends
Daily SMA20	6.8853
Daily SMA50	6.895
Daily SMA100	6.806
Daily SMA200	6.8368

Levels
Previous Daily High	6.8949
Previous Daily Low	6.8613
Previous Weekly High	6.9004
Previous Weekly Low	6.8166
Previous Monthly High	6.9626
Previous Monthly Low	6.8367
Daily Fibonacci 38.2%	6.8821
Daily Fibonacci 61.8%	6.8741
Daily Pivot Point S1	6.8604
Daily Pivot Point S2	6.8441
Daily Pivot Point S3	6.8268
Daily Pivot Point R1	6.894
Daily Pivot Point R2	6.9113
Daily Pivot Point R3	6.9276

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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