# Trade war could force heavier hand from China on yuan

> Reuters reports that a trade war could push Beijing to take a heavier hand on the yuan, which has already lost about 5 percent so far this year. The yuan faces downward pressure from domestic monetary easing, rising US yields and a broad dollar rise.

- Date: 2018-09-03 · published 2018-09-03T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/63264-trade-war-could-force-heavier-hand-from-china-on-yuan
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

A weaker yuan makes Chinese imports pricier in dollar terms and can curb Chinese buying of US feed inputs, so a deeper yuan slide tends to weigh on US grain and meal export demand.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-09-27 | [Its leash lengthened, China's yuan flirts with trade war role](https://feedsoft.ai/events/57289-its-leash-lengthened-china-s-yuan-flirts-with-trade-war-role.md) | +0.2% | -0.9% |
| USDCNY | 2020-11-13 | [Chinese yuan after Biden election win, Trump's trade war](https://feedsoft.ai/events/50360-chinese-yuan-after-biden-election-win-trump-s-trade-war.md) | -0.4% | -1.0% |
| USDCNY | 2018-09-28 | [US-China trade war may push yuan 10 percent lower: Economist Andy Xie](https://feedsoft.ai/events/63265-us-china-trade-war-may-push-yuan-10-percent-lower-economist-andy-xie.md) | -0.3% | +0.8% |
| USDCNY | 2018-02-08 | [China's Yuan Toppled From Two-Year High as Trade Data Surprises - Bloomberg](https://feedsoft.ai/events/7104-china-s-yuan-toppled-from-two-year-high-as-trade-data-surprises-bloomberg.md) | +1.3% | +1.2% |
| USDCNY | 2021-03-31 | [China’s currency set for worst month since US trade war](https://feedsoft.ai/events/48332-china-s-currency-set-for-worst-month-since-us-trade-war.md) | -0.5% | -1.3% |
| SOY | 2018-09-11 | [US-China trade war: Investors could soon favor yuan over dollar, former PBOC governor says](https://feedsoft.ai/events/63269-us-china-trade-war-investors-could-soon-favor-yuan-over-dollar-former-pboc.md) | -1.2% | +4.3% |
| SOY | 2019-09-27 | [Its leash lengthened, China's yuan flirts with trade war role](https://feedsoft.ai/events/57289-its-leash-lengthened-china-s-yuan-flirts-with-trade-war-role.md) | +2.6% | +5.0% |
| SOY | 2018-09-28 | [US-China trade war may push yuan 10 percent lower: Economist Andy Xie](https://feedsoft.ai/events/63265-us-china-trade-war-may-push-yuan-10-percent-lower-economist-andy-xie.md) | +0.5% | -1.5% |

## Sources

- reuters.com: https://www.reuters.com/article/china-markets-yuan/trade-war-could-force-heavier-hand-from-china-on-yuan-idUSL8N1VL25Y/

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