# USD/CNY: Yield advantage to strengthen the yuan - HSBC - Forex Crunch

> HSBC economists expect USD/CNY to move toward the lower end of its 6.84-7.20 range, citing the yuan's yield advantage and growth recovery. They note the currency remains most sensitive to US-China trade matters. A recent US-China call on Phase 1 progress was referenced.

- Date: 2020-08-26 · published 2020-08-26T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/51836-usd-cny-yield-advantage-to-strengthen-the-yuan-hsbc-forex-crunch
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan can support Chinese purchasing power for US feed commodities, but the forecast is an FX view with limited direct effect on grain flows.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-01-05 | [USD/CNY to tick down in the year ahead - MUFG - Forex Crunch](https://feedsoft.ai/events/12072-usd-cny-to-tick-down-in-the-year-ahead-mufg-forex-crunch.md) | +0.3% | +0.0% |
| USDCNY | 2020-10-09 | [USD/CNY catch-up may have more to go - MUFG - Forex Crunch](https://feedsoft.ai/events/5560-usd-cny-catch-up-may-have-more-to-go-mufg-forex-crunch.md) | -1.4% | -2.7% |
| USDCNY | 2018-02-08 | [Chinese yuan strengthens to new high against USD - Chinadaily.com.cn](https://feedsoft.ai/events/7105-chinese-yuan-strengthens-to-new-high-against-usd-chinadaily-com-cn.md) | +1.3% | +1.2% |
| USDCNY | 2018-01-25 | [Chinese yuan strengthens to 27-month high against USD Thursday](https://feedsoft.ai/events/11866-chinese-yuan-strengthens-to-27-month-high-against-usd-thursday.md) | -1.3% | -0.3% |
| USDCNY | 2018-02-01 | [Chinese yuan strengthens to new high against USD - Xinhua \| English.news.cn](https://feedsoft.ai/events/66716-chinese-yuan-strengthens-to-new-high-against-usd-xinhua-english-news-cn.md) | -0.3% | +1.2% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/08/26/usd-cny-yield-advantage-to-strengthen-the-yuan-hsbc/

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