# Flash crash of pound piles pressure on already weak yuan | South China Morning Post

> The British pound fell nearly 10 percent against the dollar in a brief flash crash during Asian trading, hitting a 31-year low after the Brexit vote. The offshore yuan weakened to a nine-month low around the same time as Beijing tried to contain depreciation bets. Economists said London's status as a financial hub was unlikely to be affected.

- Date: 2016-10-09 · published 2016-10-09T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/5891-flash-crash-of-pound-piles-pressure-on-already-weak-yuan-south-china-morning
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Currency volatility in sterling and the yuan changes the cost of dollar-priced feed imports for European and Chinese buyers. The effect on grain prices is mainly indirect through exchange rates.

## Read by commodity

- GBPUSD: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2016-10-11 | 1 | +0.8% | 5.7 | The pound flash crash and the offshore yuan's nine-month low during the holiday closure increased risk aversion and depreciation pressure, which was likely priced in when onshore markets reopened. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-01-03 | [Yuan starts 2017 weaker after PBOC cuts fixing by most in two weeks \| South China Morning Post](https://feedsoft.ai/events/10250-yuan-starts-2017-weaker-after-pboc-cuts-fixing-by-most-in-two-weeks-south-china.md) | -0.1% | -1.0% |
| USDCNY | 2016-11-14 | [Chinese yuan tumbles to a seven-year low as dollar surges \| South China Morning Post](https://feedsoft.ai/events/7742-chinese-yuan-tumbles-to-a-seven-year-low-as-dollar-surges-south-china-morning.md) | +1.3% | +1.6% |
| USDCNY | 2022-01-06 | [China's yuan eases on hawkish Fed, warning of depreciation pressure \| Reuters](https://feedsoft.ai/events/43356-china-s-yuan-eases-on-hawkish-fed-warning-of-depreciation-pressure-reuters.md) | -0.1% | -0.0% |
| USDCNY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| USDCNY | 2016-06-27 | [Update \| Chinese yuan slides to 5-year low, pound slumps further in Brexit aftershock \| South China Morning Post](https://feedsoft.ai/events/12457-update-chinese-yuan-slides-to-5-year-low-pound-slumps-further-in-brexit.md) | +0.6% | +1.0% |

## Sources

- scmp.com: https://www.scmp.com/news/china/economy/article/2026544/flash-crash-pound-piles-pressure-already-weak-yuan

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