# China’s currency upsets forecasts by beginning the new year stronger

> The yuan started 2017 stronger than forecasters expected, as a liquidity squeeze hurt investors betting on a falling currency. Forecasts for further depreciation were upset by the early-year rally. The squeeze was tied to tight funding conditions around the holiday.

- Date: 2017-01-14 · published 2017-01-14T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/11877-china-s-currency-upsets-forecasts-by-beginning-the-new-year-stronger
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan lowers the local cost of dollar-priced feed imports, but the rally rests on temporary liquidity conditions that could reverse.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-02-04 | [China signals support for yuan with currency fix stronger than 7 per US dollar \| The Straits Times](https://feedsoft.ai/events/5134-china-signals-support-for-yuan-with-currency-fix-stronger-than-7-per-us-dollar.md) | -0.6% | -0.9% |
| USDCNY | 2017-07-30 | [China's yuan firms on stronger fixing, set for the 3rd winning month - The Business Times](https://feedsoft.ai/events/70191-china-s-yuan-firms-on-stronger-fixing-set-for-the-3rd-winning-month-the.md) | -0.1% | -1.3% |
| USDCNY | 2022-01-26 | [China's Currency Hits Four-Year High as PBOC Stands Back](https://feedsoft.ai/events/6265-china-s-currency-hits-four-year-high-as-pboc-stands-back.md) | +0.6% | -0.2% |
| USDCNY | 2026-02-01 | [China Sets Yuan Fixing Stronger Than 7 for First Time Since 2023](https://feedsoft.ai/events/21278-china-sets-yuan-fixing-stronger-than-7-for-first-time-since-2023.md) | -0.2% | -1.0% |
| USDCNY | 2025-11-26 | [China sets strongest yuan fix in over a year as Fed-cut bets rise \| South China Morning Post](https://feedsoft.ai/events/22172-china-sets-strongest-yuan-fix-in-over-a-year-as-fed-cut-bets-rise-south-china.md) | -0.3% | -1.0% |

## Sources

- economist.com: https://www.economist.com/finance-and-economics/2017/01/14/chinas-currency-upsets-forecasts-by-beginning-the-new-year-stronger

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