Looks like the US will use the G20 summit to pressure China to allow the Yuan to strengthen despite efforts by China to preempt such actions.

The White House says that the Treasury will update its semi-annual currency report after the G20 summit. Treasury postponed the report in April, hoping talks with China in May would lead to a currency breakthrough. They did not.

In the currency report, Treasury can brand China a currency manipulator and start the process toward taking China to the WTO…Talk of an update is clearly an implied threat to China.

China/US tensions over currencies tends to undermine the dollar owing to the US’s status as the world’s greatest debtor.

EUR/USD trades steadily at 1.2385.