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JPMorgan analysts expect yuan weakness to continue and suggest the People's Bank of China may need a stronger daily fixing as a circuit breaker. The yuan rallied on Tuesday after the central bank set its fixing stronger than expected for a second day.
Expectations of continued weakness combined with official intervention create two-way risk for China-linked currency and commodity flows, so buyers should watch the fixing and any policy follow-through.
reuters.comJun 27, 2023After 362 past bearish macro events, USDCNY moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
