Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
Chinese yuan has dropped the lowest point in a year as the trade tensions between the United States and China has been taking a toll in 2018, especially since March. Yuan dropped to 6.844 against the USD in overseas trading.
We have already urged our readers to long the USD against the Chinese yuan as the country’s central bank faces the impossible trilemma, https://www.econotimes.com/Renminbi-Series-Chinas-impossible-trilemma-returns-to-haunt-1405122
Here are our calls,
- https://www.econotimes.com/FxWirePro-Long-dollar-against-Chinese-yuan-targeting-686-and-beyond-1404999
- https://www.econotimes.com/FxWirePro-Short-term-Outlook-Buy-USD-CNH-targeting-654-1376249
With U.S. trade war with China raging amid increases in the interest rates, recently, China’s one of the biggest companies filed for bankruptcy, https://www.zerohedge.com/news/2018-07-19/china-suffers-its-biggest-corporate-default-2018-pboc-finally-panics
As the stress in the banking system continues amid corporate defaults reaching $5 billion so far in 2018, the People’s Bank of China has continued to supply liquidity ad credit to the banking system. PBoC has already instructed the banks to expand lending and buy more bonds issued to corporates with the credit rating of AA+ and below, which are usually more susceptible to defaults, using Medium Term Loan Facilities (MLF). In the latest move last night, PBoC injected $74 billion to the MLF facility.
