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Demand for yuan assets is rising as investors chase yields in a world where over $14 trillion of global debt pays below zero. Yuan trading volumes in London have reached record highs, and options on the currency now exceed those on the yen.
Speculators are adding volatility to the market.
Strong capital inflows support the yuan, which lowers the dollar cost of Chinese commodity imports. The effect on feed markets is indirect and gradual.
dailymaverick.co.zaBloombergFeb 22, 2021After 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.
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.
