Earnings in Dollars vs. Yuan, PBoC's Chief Alluding to Depreciation By Investing.com

Investing.com – The dollar has changed little in relation to most major currencies at the start of its European trading on Friday, but has appreciated against after the governor of the Chinese central bank has hinted that "the dollar has not changed much. he could let the currency depreciate.

Trade has stabilized in a generally narrow range in anticipation of the US release at 8:30 (12:30 GMT), which will clearly indicate how much the US economy is cooling under the pressure of enlargement. tariff disputes with China and Mexico.

At 2:20 am (6:20 GMT), it was at $ 1,267, down slightly after the announcement of a surprising fall in German in April. data and for April are due later in the morning.

The, which measures the greenback against a basket of six major currencies, remained unchanged at 97.012.

During the night, the governor of the People's Bank of China told Bloomberg in an interview that "no figure is more important than another" with regard to the exchange rate of the yuan, a comment that analysts have taken to mean that the central bank would not do everything to stop falling below 7 for a dollar.

"The risk of depreciation of the yuan 7 has increased as the escalation of the trade war and the prospect of prolonged tension," said Christy Tan, strategist of the Australian National Bank, Christy Tan.

The situation has changed little since a day, after sending a nuanced message at its last policy meeting. The ECB appeared to rule out further interest rate cuts with its forecasts in its initial statement, but outgoing President Mario Draghi later reiterated that he had not ruled out anything – including the resumption of the quantitative easing – if the economy slows further. His comments quickly canceled the gains initially made by the euro.

Elsewhere, the British were at $ 1,2701, not much from Thursday night. The governor may have noticed with a pinch of salt that interest rate hikes are still relevant as soon as the uncertainty surrounding Brexit fades. Nevertheless, the comments were clearly less dovish than those of Draghi.