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The yuan has strengthened about 8% against the dollar since June and 5% against the euro since August, reaching 6.58 per dollar on November 26. The People's Bank of China has not directly intervened to slow the gains, though it cut the FX forward reserve requirement to zero in October.
Sustained yuan appreciation lowers China's dollar-denominated import costs for feed ingredients, supporting purchasing power but reflecting strong Chinese capital inflows rather than new feed demand.
bofit.fiBOFITNov 27, 2020After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% 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.
