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China's yuan touched a six-year low past the 6.7 per dollar threshold after the People's Bank of China set its weakest daily guidance rate since September 2010. The currency recovered some losses on the first trading day after the week-long holiday.
The Mexican peso strengthened on the same day as investors reacted to political trouble for Donald Trump.
A weaker yuan can make Chinese buyers less willing to pay up for imported feed grains and meal, which weighs on import demand. The peso's gain makes Mexican-priced feed imports slightly cheaper.
reuters.comOct 10, 2016After 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.
Not enough comparable past events yet for a historical read.
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.
The PBoC set its weakest fixing since 2010 on the first trading day after the holiday and the yuan broke past 6.70 per dollar, which directly explains the 1-day move to 2016-10-11.
The PBoC set its weakest fixing since 2010 and the yuan broke past 6.70 per dollar after the holiday, directly driving the USD/CNY rise in this window.
