The commercial tension between The USA-China has reflection in the yuan

In our last report remarked that the euro was going to work the significant support area that has around 1.15 eur/usd. From finals of May, in up to 6 occasions, has marked minimum intradaily between 1.15 and 1.155 eur/usd. Our opinion continues being that from this area with an upward trend will go out, path in which will find a first resistance in 1.185 and, then, around 1.20 eur/usd. It is necessary to emphasise, on the other hand, the recession of the Chinese yuan with the dollar, until 6.5 usd/cny, in which has been its worse week from November 2016. Is something that us worries because the commercial confrontation between The USA-China can be expanding the battlefield to the currency markets.

Source: Bankia Studies