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The yuan has fallen more than 3% against the dollar over the past two weeks as US-China tensions escalated. Both countries have threatened new tariffs on each other's exports, with Trump proposing duties on hundreds of billions of dollars of Chinese goods.
The Fed's rate hikes have also strengthened the dollar.
Tariff threats combined with a weaker yuan raise the risk of reduced Chinese demand for US farm exports, pressuring soybean and feed prices. A stronger dollar adds to the pressure on commodity values priced in dollars.
money.cnn.comDaniel ShaneJun 28, 2018After 398 past bullish macro events, USDCNY moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
After 2,356 past bullish macro events, DXY moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
