Morning forex briefing
The USD has rallied overnight after
a slow start to Asian trade, the greenback firming in early Europe
after unconfirmed rumors of a second North Korean nuclear test made the rounds
starting in late Asia. USD/JPY initially rallied past Monday’s highs before
encountering a round of selling prompted by comments from China PBOC advisor
Fan suggesting that China has “little choice†regarding their USD reserves and
that China Yuan appreciation is “too slowâ€. Traders initially interpreted his
remarks to mean that China would soon sell some of their USD reserves and
allow the Yuan to float faster but later his remarks included that Yuan price
was a “USD problem—