Gold Prices Set for Weekly Loss as Iran Tensions and Fed Rate Outlook Weigh 
Oil and LNG Tankers Turn Back as Strait of Hormuz Security Risks Escalate 
Dollar Ends Week Higher as Yen Jumps on Japan Pension Fund Investment Plans 
Venezuela Earthquake Death Toll Climbs to 3,811 as Government Seeks Sanctions Relief 
Wall Street Rises as SK Hynix’s Record Nasdaq Debut Steals Spotlight Ahead of U.S. CPI Data 
Japan Producer Inflation Hits 7.1% in June, Fueling BOJ Rate Hike Expectations 
Gold Prices Slip as Stronger Dollar, Fed Rate Outlook Weigh on Bullion 
Dollar Slips as Oil Prices Ease, Fed Rate Outlook Remains Uncertain 
The Chinese yuan is expected to remain relatively steady in Q2 while trading along with a broader market tone in the months ahead. On the other hand, as the credit-fuelled growth could raise risks to the real economy down the road, the yuan is expected to face some headwinds in H2.
The United States Treasury Department has chosen not to brand China a currency manipulator in an official semiannual FX report released last Friday, even though it still kept China on a previously established “Monitoring List.”
Premier Li Keqiang said Tuesday that market confidence in the yuan currency has significantly improved and the nation will keep yuan basically stable at a reasonable and balanced level. The State Council, China’s cabinet, said Wednesday in a statement that the nation should make more forceful adjustments to fiscal and monetary policies if new urban jobs fell sharply and the unemployment rate rises significantly.
"Meanwhile, we note the PBoC has persistently set USD/CNY fixing with a downward bias in the past week. It means the central bank’s daily reference rate will slide markedly if the DXY Index tumbles overnight. In addition, China is on track to reach its economic growth target for 2017 due to booming credit supply," Scotiabank commented in its latest research report.
