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    Greenback gains on stronger sentiment

    The U.S. dollar gained considerable ground against its other counterparts on Wednesday, as strong trade data from China and stability in the Asian markets helped sentiment to improve.

    People’s Bank of China fixed the midpoint rate for the yuan at levels close to the fix of the last two days, dampening worries over the significant deterioration of the currency experienced at the beginning of the year.
     
    At the same time, an official report revealed that Chinese exports advanced by 2.3% in yuan-denominated terms last month, compared to a year before, retreating from a 3.7% decline in November. In dollar-terms, exports fell by 1.4% on a year-over-year basis, against expectations for a fall of 8.0%.
     
    On the other hand, imports slid by 4% in yuan terms, following a fall of 5.6% in November. When it comes to dollar terms, imports declined 7.6% from a year before, beating forecasts for a drop of 11.5%.

    The figures signaled that the economy of China is slowly stabilizing, allaying concerns over a deterioration of the global growth driven by China.
     
    The dollar gained 0.42% against the yen, to trade at 118.16, higher than Monday’s four-month low of 116.68.
     
    Elsewhere, the greenback was also higher against the euro and the sterling, with EUR/USD falling 0.37% to 1.0821, and GBP/USD sliding 0.17% to 1.4423, higher than the previous session’s five year-trough of 1.4349. The dollar also advanced against the franc, with USD/CHF jumping 0.80% at 1.0103.
     
    In the meantime, the Australian and New Zealand dollars held steady, with AUD/USD rising 0.46% at 0.7018, and with NZD/USD adding 0.14$ to 0.6547. The greenback fell 0.27% against the Canadian dollar to trade at 1.4224, still close to Tuesday’s 12-1/2 year peak of 1.4315.
     
    The U.S. dollar index which tracks the performance of the greenback against six other major rivals, gained 0.26% to trade at 99.28.

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