◂ Event Timeline

Feb 26, 2017MACROChina

China's yuan falls, but fears of US trade war may cap depreciation

The yuan fell against the US dollar on Monday after the People's Bank of China set a weaker midpoint of 6.8814 per dollar, reflecting global dollar strength. Traders said depreciation room is limited because of the threat of a US trade war, and Trump had labelled China a currency manipulator the previous Thursday.

WHY IT MATTERS

A weaker yuan makes Chinese exports cheaper and raises the dollar cost of imported feed inputs. Trade-war risk limits how far the currency can slide, which caps the upside for USD/CNY.

AFFECTSChinese Yuan (CNY per USD)▲

SOURCE
businesstimes.com.sgFeb 26, 2017

Price reaction & history

Chinese Yuan (CNY per USD)▲bullishSO FAR1d +0.0%5d +0.5%20d +0.2%

After 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.

May 1, 2024Yuan falls out of favour with China’s exporters as fears of depreciation mount-0.3%
Apr 25, 2017China's yuan dips against US dollar, falls to record low against currency basket - The Business Times+0.1%
Oct 26, 2017China's yuan weakens on US dollar strength, set for 2nd weekly loss - The Business Times-0.5%
Jan 6, 2022China's yuan eases on hawkish Fed, warning of depreciation pressure | Reuters-0.1%
Oct 25, 2022China’s yuan tumbles amid fears about Xi’s third term | CNN Business+0.6%

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.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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