# Foreign Exchange Markets Anxious Ahead Of Trade Talks

> The US raised tariffs on $200bn of Chinese goods as planned, and China's Commerce Ministry said it deeply regrets the move and will retaliate. The yuan weakened to around 6.80 per dollar while trade talks were set to resume.

- Date: 2019-05-09 · published 2019-05-09T12:00:00.000Z
- Category: trade · region China · magnitude high
- Page: https://feedsoft.ai/events/10433-foreign-exchange-markets-anxious-ahead-of-trade-talks
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Sorghum](https://feedsoft.ai/c/SORGHUM.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Confirmed tariff hikes and promised Chinese retaliation directly threaten US soybean and feed grain exports to China, which pressures US farm commodity prices.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- DDGS: bearish ▼
- USDCNY: bullish ▲
- SORGHUM: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2019-05-09 | 1 | +0.6% | 3.4 | The tariff hike on $200bn of Chinese goods and China's retaliation pledge weakened the yuan to about 6.80, but the article's timing around the move's end makes it partly a consequence rather than a cause. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-05-14 | [US-China trade stand-off and implications for FX markets \| Lombard Odier](https://feedsoft.ai/events/8442-us-china-trade-stand-off-and-implications-for-fx-markets-lombard-odier.md) | +0.5% | +0.5% |
| USDCNY | 2019-08-07 | [Trade war escalation wreaks havoc in markets: Impact on FX \| Lombard Odier](https://feedsoft.ai/events/5370-trade-war-escalation-wreaks-havoc-in-markets-impact-on-fx-lombard-odier.md) | +0.3% | +1.8% |
| USDCNY | 2018-05-02 | [China is weakening its currency before US trade talks begin](https://feedsoft.ai/events/65234-china-is-weakening-its-currency-before-us-trade-talks-begin.md) | +0.6% | +1.3% |
| USDCNY | 2019-08-05 | [Oil Slumps Into Bear Market as Trade Tensions Feed Demand Angst - Bloomberg](https://feedsoft.ai/events/10827-oil-slumps-into-bear-market-as-trade-tensions-feed-demand-angst-bloomberg.md) | +1.8% | +3.1% |
| USDCNY | 2019-05-13 | [Forex Market: Yuan weakest since December as China adds tariffs](https://feedsoft.ai/events/8441-forex-market-yuan-weakest-since-december-as-china-adds-tariffs.md) | +1.4% | +1.6% |
| SOY | 2019-08-27 | [Forex markets: US-China trade tensions in focus](https://feedsoft.ai/events/57811-forex-markets-us-china-trade-tensions-in-focus.md) | +0.3% | +4.7% |
| SOY | 2019-05-14 | [US-China trade stand-off and implications for FX markets \| Lombard Odier](https://feedsoft.ai/events/8442-us-china-trade-stand-off-and-implications-for-fx-markets-lombard-odier.md) | +5.2% | +8.6% |
| SOY | 2018-03-23 | [Asian markets jittery over trade war fears](https://feedsoft.ai/events/66230-asian-markets-jittery-over-trade-war-fears.md) | +1.5% | -0.1% |

## Sources

- exchangerates.org.uk: https://www.exchangerates.org.uk/news/25743/foreign-exchange-markets-anxious-ahead-of-trade-talks-as-usdcny-rate-climbs-higher.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.