The Chinese stock exchange suffered its biggest drop since 2007 on Tuesday, falling 8.5%. However, it was also revealed that China’s main index was up 6% from the July low, and as a result, the Chinese yuan only fell 0.5% against sterling, actually gaining a little on the US dollar. There is little further data of note expected to be released for China this week, until the Manufacturing Purchasing Managers’ Index (PMI) on Saturday.
There was a similar trend for the Canadian dollar on Monday, as it also lost some strength against sterling – although it did actually improve slightly against its North American counterpart. Today’s Raw Materials Price Index is most likely to cause a shift in the Canadian dollar’s strength; this data has hit or exceeded expectations in the past four months, so Canada will be hoping for much of the same.
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