# Markets swing on trade and monetary policy

> The BIS reviews how trade tensions and monetary policy drove risky asset prices from May through August 2019. Central banks in advanced and emerging economies eased policy to offset weakening growth. The renminbi fell to multi-year lows against the dollar during the August escalation.

- Date: 2019-09-22 · published 2019-09-22T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/57273-markets-swing-on-trade-and-monetary-policy
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Renminbi weakness and trade-driven sell-offs reduce Chinese import demand expectations and pressure export-oriented economies. This can weigh on commodity demand and currency-linked feed prices.

## Read by commodity

- DXY: neutral
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-12-11 | [Yuan and equity markets fall on Moody’s Ratings downgrade](https://feedsoft.ai/events/6457-yuan-and-equity-markets-fall-on-moody-s-ratings-downgrade.md) | -0.7% | +0.0% |
| USDCNY | 2022-05-03 | [China \| RMB exchange rate sharp depreciation amid diverging monetary policy \| BBVA Research](https://feedsoft.ai/events/8313-china-rmb-exchange-rate-sharp-depreciation-amid-diverging-monetary-policy-bbva.md) | +1.8% | +1.0% |
| USDCNY | 2022-06-08 | [China’s yuan eases amid concerns of increasing policy divergence - Markets - Business Recorder](https://feedsoft.ai/events/41173-china-s-yuan-eases-amid-concerns-of-increasing-policy-divergence-markets.md) | +1.1% | +0.5% |
| USDCNY | 2025-05-14 | [China’s yuan falls from six-month peak on rising dollar demand - Markets - Business Recorder](https://feedsoft.ai/events/24887-china-s-yuan-falls-from-six-month-peak-on-rising-dollar-demand-markets-business.md) | +0.2% | -0.2% |
| USDCNY | 2019-05-23 | [Trade tensions are starting to pull foreign-exchange markets into the arena \| INTERNATIONAL MARKET NEWS - Business Standard](https://feedsoft.ai/events/59285-trade-tensions-are-starting-to-pull-foreign-exchange-markets-into-the-arena.md) | -0.1% | -0.8% |
| DXY | 2019-11-21 | [Account of the monetary policy meeting](https://feedsoft.ai/events/56279-account-of-the-monetary-policy-meeting.md) | +0.3% | -1.1% |
| DXY | 2024-05-10 | [The Fed - Monetary Policy and Exchange Rates during the Global Tightening](https://feedsoft.ai/events/30140-the-fed-monetary-policy-and-exchange-rates-during-the-global-tightening.md) | -0.8% | +1.1% |
| DXY | 2021-04-22 | [Euro and U.S. dollar waffle as markets weigh ECB policy talk](https://feedsoft.ai/events/47818-euro-and-u-s-dollar-waffle-as-markets-weigh-ecb-policy-talk.md) | -0.3% | -1.2% |

## Sources

- bis.org: https://www.bis.org/publications/markets-swing-trade-and-monetary-policy

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