Google's services have been blocked in China for several years, but the company still has businesses there, as the tech giant seeks to sell products to Chinese firms in...Technologyread more
Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt.Technologyread more
The House voted to table a resolution to start impeachment proceedings against President Donald Trump introduced by Rep. Al Green.Politicsread more
A photo editing app has introduced a few new wrinkles to the faces of celebrities — and to the ongoing discussion around personal digital security, NBC reports.Technologyread more
Stocks in Asia traded lower on Thursday morning. Australia's jobs data showed the net number of jobs created was far below expectations.Asia Marketsread more
Property price gains across the wider U.K. have been slowing since 2016, according to the U.K.'s Office for National Statistics.Real Estateread more
The International Monetary Fund on Wednesday said that the U.S. dollar was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, Japan's yen and...World Economyread more
The company blamed its Q2 content slate and price increases for the subscriber miss.Technologyread more
IBM's year-over-year revenue has now declined for four quarters in a row. Impact from Red Hat is not yet factored into the company's guidance.Technologyread more
See which stocks are posting big moves after the bell on July 17.Market Insiderread more
"It's clearly doing more harm than good," the "Mad Money" host says. Instead Facebook should buy Square for $70 billion and expand the payments network worldwide.Mad Money with Jim Cramerread more
SHANGHAI, July 12 (Reuters) - China's yuan inched up against the dollar on Friday and looked set for its biggest weekly gain in three, as expectations for U.S. rate cuts weighed on the greenback. However, gains were capped by caution ahead of the release of China's June trade and lending data later in the day, and second-quarter GDP and June activity readings next week. Prior to the market opening , the People's Bank of China (PBOC) set the midpoint rate at 6.8662 per dollar, 15 pips firmer than the previous fix of 6.8677. In spot market trade, the yuan opened at 6.8725 per dollar and was changing hands at 6.8713 at midday, 27 pips firmer than the previous late session close. If the yuan finishes the late night session at the midday level, it would have gained 0.33 percent on the dollar for the week, after losing 0.42 percent a week earlier. One trader at a foreign bank said the yuan continued to draw support from expectations that the U.S. Federal Reserve will start to cut interest rates soon. Though stronger-than-expected job and inflation data have tempered bets on more aggressive easing this month, markets still widely expect the Fed to deliver a 25 basis points (bps) interest rate cut at its policy meeting on July 30-31. Traders said prospects of global policy easing are positive for the yuan for now, but believe gains will be kept in check by continued worries over Sino-U.S. trade negotiations and the health of the domestic economy. U.S. President Donald Trump said on Thursday that China was not living up to promises it made on buying agricultural products from American farmers as the world's two largest economies work to resolve a trade dispute. A second trader at a Chinese bank said dollar buying interest quickly emerged when the onshore spot rate rose past 6.87, while selling pressure appeared when it was weakening close 6.89. "Traders and corporate clients seemed to have a consensus in rangebound trading strategy, which let the yuan stuck in the current thin range," said a third trader at a foreign bank.
DATA ANXIETY Trade data on Friday (0700 GMT) is expected to show China's imports and exports both fell in June from a year earlier, highlighting weakening demand at home and abroad. Credit data is expected around 0800 GMT. China will report second-quarter economic growth data on Monday. Analysts polled by Reuters expect growth cooled to 6.2%, the weakest pace in at least 27 years, despite a flurry of support measures to spur domestic demand amid a deepening trade war with the United States. "To counteract downside risks to growth, we expect more policy accommodation from the authorities," Eugenia Fabon Victorino, head of Asia strategy at SEB Markets, said in a note. "Aside from expecting 100 bps of additional cuts in the reserve requirement ratio, we now expect a 5 bps reduction in the 7-day reverse repo rate, taking it to 2.50% in the next three months," she said, maintaining her forecast for the yuan to trade at 6.95 by the end of this year. If the Fed eases, many China watchers believe the PBOC is likely to follow by lowering one of its key short-term money market rates, though some have forecast a more forceful benchmark rate cut. The global dollar index traded at 96.932 as of midday from the previous close of 97.05. The offshore yuan was trading at 6.8747 per dollar.
The yuan market at 0404 GMT:
Item Current Previous ChangePBOC midpoint 6.8662 6.8677 0.02%Spot yuan 6.8713 6.874 0.04%Divergence from 0.07%
Spot change YTD 0.02%Spot change since 2005 20.45%
Item Current Previous ChangeThomson 93.63 93.62 0.0
Reuters/HKEX CNH index
Dollar index 96.932 97.05 -0.1
*Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People's Bank of China (PBOC) allows the exchange rate to rise or fall 2 percent from official midpoint rate it sets each morning.
OFFSHORE CNH MARKET
Instrument Current Difference
Offshore spot yuan 6.8747 -0.05%*Offshore 6.9088 -0.62%
*Premium for offshore spot over onshore
**Figure reflects difference from PBOC's official midpoint, since non-deliverable forwards are settled against the midpoint. .
(Reporting by Winni Zhou and Andrew Galbraith; Editing by Kim Coghill)