AtlantisFX | The euro barely moved on Thursday in a predominantly calm environment. At noon, the common currency cost $ 1.2885, more than in early trading. The European Central Bank (ECB) had set the reference rate on Wednesday afternoon at $ 1.2993.
There was no strong impetus until noon. Neither key economic data has been published nor have there been any important statements by senior central bankers. Quiet is the location also because of a holiday in the US. Independence Day is celebrated there, which is why the activity rests on the financial markets and in many authorities.
The day before, US President Donald Trump attacked China and Europe with sharp words and accused them of currency manipulation. The attack follows similar allegations against the ECB a few days ago. Anyway, China is under suspicion of trumping its currency with Trump in order to gain "advantages" in international trade "for years".
A glance at the price development does not cover Trump's allegations comprehensively: The Chinese Yuan has had periods of strength and weakness against the dollar in recent years, as has the euro. Foreign exchange experts point out that it is currently not in the interests of China to devalue the yuan too much. Otherwise, the country threatened capital flight and further trouble with the US in the trade talks, the main arguments are.
Although the central bank of China controls the yuan within limits, it also focuses on market forces. In general, the central banks of large economies have committed themselves to pursue no exchange rate targets.