Loading…
The PBoC set the yuan midpoint at 6.8903 per dollar on Thursday, the first fix stronger than 6.9000 since January. Offshore yuan traded near 6.87-6.89.
The author attributes the yuan's gains mainly to US dollar weakness and China's economic recovery, rather than trade talks.
A firmer yuan supports Chinese import buying power, but the move is driven mainly by FX factors rather than feed supply or demand.
asiafinancial.comUwe ParpartAug 27, 2020After 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.
