The Chinese yuan (7.1815) is at fresh 11-year lows.
The euro (1.0940) and sterling (1.1985) are falling, the Australian dollar (0.6719) is slightly weaker, while the yen (106.18) is holding up well.
Key data
Todays economic data is focused on US manufacturing PMI, in addition there is data on Spanish unemployment, UK and US construction and US economic optimism. In addition, US Federal Open Market Committee member Eric Rosengren is speaking.
Todays key themes and views
The rebound in nickel and tin seems to be providing some follow-through buying in the rest of the metals, this despite of the stronger dollar. The global economy needs a new US-China trade deal; Chinas Caixin PMI data opened the possibility that domestic policy may be leading to a turnaround in economic activity and announcements that the government is trying to stimulate the economy also provides optimism. But we think it will take a new trade deal to pull the global economy out of its shallow dive.
Gold prices are consolidating and any relief in other markets could lead to some profit-taking in the yellow metal, but we should once again get a feel for how strong underlying sentiment is by seeing how deep any pullback goes in gold. So far pullbacks have been shallow.
William Adams
Fastmarkets