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China's yuan strengthened to its firmest level against the dollar in five months on Wednesday. The move followed comments from Fed Governor Christopher Waller that interest rate cuts could begin within months if inflation falls, which fueled expectations that US rates have peaked.
The People's Bank of China also set a firmer midpoint fix.
A weaker dollar and firmer yuan reduce pressure on dollar-denominated commodity prices and on China's import costs, and they signal that US rate expectations are shifting. Feed buyers may see modest relief in the dollar-linked grain complex.
brecorder.comReutersNov 29, 2023After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.
After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), 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.
