Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Gold Price Rises as Investors Weigh U.S.-Iran Talks and Fed Policy Outlook 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
German Industry Employment Falls to Lowest Level in a Decade 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
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.
