Steady tones as we look towards European trading

<p>The only notable headlines so far today is from China once again, with the <a href="https://www.forexlive.com/centralbank/pboc-sets-yuan-midpoint-at-71588dollar-20230809/" target="_blank" rel="follow">PBOC fixing the yuan</a> much stronger and then stepping in to <a href="https://www.forexlive.com/centralbank/chinas-major-state-owned-banks-seen-selling-dollars-to-buy-yuan-20230809/" target="_blank" rel="follow">defend the currency</a> after. Adding to that is more bad news on the economic front as not only is China now suffering from rather dead domestic demand, <a href="https://www.forexlive.com/news/chinas-cpi-mom-02-vs-01-expected-yoy-03-vs-04-last-expected-20230809/" target="_blank" rel="follow">deflation pressures</a> are also creeping in.</p><p>But amid the Chinese central bank's efforts, the yuan is holding its ground today. That hasn't really impacted the mood elsewhere though, as major currencies are little changed in general and equities are also relatively steady after yesterday's retreat (which could've been worse).</p><p>Here's a look at dollar pairs and as you can see, the lack of changes and narrow ranges are telling of a more tepid market mood ahead of European trading:</p><p>US futures are also little changed and so are Treasury yields, so that isn't giving traders much to work with. The focus and attention now is shifting to the US CPI report tomorrow instead.</p>

This article was written by Justin Low at www.forexlive.com.