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The yuan fell to a near nine-month low against the dollar as Sino-US tensions rose over China's proposed Hong Kong security law and Trump's planned response. Corporate dollar demand added pressure, and the PBOC's midpoint fixing came in firmer than forecasts but did not lift the currency.
A weaker yuan makes Chinese buyers of US soybeans and other farm goods pay more in local currency, which can slow purchases. It also raises the risk that China's import demand softens if the currency keeps sliding.
financialpost.comReutersMay 27, 2020After 14 past bullish geopolitics events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (36% higher; middle half -0.4% to +0.2%), and -0.5% over 20.
After 53 past bearish geopolitics events, Soybeans moved a median -0.3% over 5 sessions (47% higher; middle half -1.9% to +1.2%), and +1.0% 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.
