Reuters quotes a Chinese central banker as saying that there is no basis for a big appreciation in the yuan but that the currency will have more price flexibility. Yuan policy will have limited impact on global economy prices, he says. More reform of the international monetary system is need to solve global imbalances.
Markets are range trading in quiet pre-G20 trade. Expect news wires to be busy today as world leaders, finance ministers and central bankers gather in Toronto…
EUR/USD trades at 1.2285 after a pop back above 1.2300 a short while ago. Central bank bids are rumored between 1.2250/70. It trades at 1.2290.