# How China’s yuan could be the currency whipping boy of Brexit - MarketWatch

> Bank of America cut its 2016 GDP growth forecast for China and lowered the growth target to 6.4% from 6.5%. Analysts expect the yuan to depreciate faster against the dollar after Brexit as investors move into the greenback. Capital Economics said the direct economic shock from the UK to China would be small.

- Date: 2016-06-27 · published 2016-06-27T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12455-how-china-s-yuan-could-be-the-currency-whipping-boy-of-brexit-marketwatch
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expected faster yuan depreciation and slower Chinese growth point to softer Chinese import demand and a stronger dollar, both of which weigh on feed commodity prices.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2016-06-30 | 5 | +1.1% | 2.9 | Analysts expected faster yuan depreciation post-Brexit as money moved into the greenback and China's growth forecasts were cut, which fed sentiment. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-01-30 | [What the coronavirus outbreak means for the Chinese yuan - MarketWatch](https://feedsoft.ai/events/55308-what-the-coronavirus-outbreak-means-for-the-chinese-yuan-marketwatch.md) | +0.8% | +1.3% |
| USDCNY | 2018-01-09 | [China Changes the Way It Manages Yuan After Currency's Jump - Bloomberg](https://feedsoft.ai/events/67197-china-changes-the-way-it-manages-yuan-after-currency-s-jump-bloomberg.md) | -0.9% | -3.3% |
| USDCNY | 2024-10-29 | [How the US election could impact China's markets \| Reuters](https://feedsoft.ai/events/28073-how-the-us-election-could-impact-china-s-markets-reuters.md) | -0.4% | +1.8% |
| USDCNY | 2018-07-30 | [China's falling yuan stokes currency tensions](https://feedsoft.ai/events/64267-china-s-falling-yuan-stokes-currency-tensions.md) | +0.3% | -0.1% |
| USDCNY | 2018-10-31 | [China to sell new yuan bills in Hong Kong – a new tool to control the currency now at a 10-year low \| South China Morning Post](https://feedsoft.ai/events/62764-china-to-sell-new-yuan-bills-in-hong-kong-a-new-tool-to-control-the-currency.md) | -0.7% | -0.4% |
| DXY | 2018-08-23 | [Here’s how Jackson Hole could impact the dollar, bonds and emerging markets - MarketWatch](https://feedsoft.ai/events/63695-here-s-how-jackson-hole-could-impact-the-dollar-bonds-and-emerging-markets.md) | -0.0% | -0.1% |
| DXY | 2016-12-05 | [How the Trump presidency could impact South American currency markets - Los Angeles Times](https://feedsoft.ai/events/73680-how-the-trump-presidency-could-impact-south-american-currency-markets-los.md) | -0.0% | +1.5% |
| DXY | 2017-01-11 | [Why the Chinese yuan’s next move may hinge on Trump’s press conference](https://feedsoft.ai/events/10767-why-the-chinese-yuan-s-next-move-may-hinge-on-trump-s-press-conference.md) | -0.7% | -1.9% |

## Sources

- marketwatch.com: https://www.marketwatch.com/story/how-chinas-yuan-could-be-the-currency-whipping-boy-of-brexit-2016-06-27

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