The volatility of the currency market was high during the week, especially for the euro/dollars parity. On Monday, Euro hit its highest annual level against the dollar over 1.17$ but went back to its standard on Friday with a 1.12$ value
When People’s Bank of China devaluated the Yuan by more than 3 percent, the common feelings around global markets was that a currency war had just started.
According to Ma Jun, chief economist at China’s central bank, the yuan will probably move in both directions in the future following last week’s devaluation as the economy stabilises.
China’s central bank, the People’s Bank of China (PBOC), unexpectedly decided to devalue its currency by 1.9% against the US dollar.
While many traders are betting on the USD:EUR parity, some new developments could reverse the current trend.
