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Goldman Sachs recommends shorting the CNH and other Asian currencies ahead of the June 28-29 G20 meeting, expecting trade tensions to ebb and flow with additional tariffs more likely than not. The bank also favors the yen as Fed cuts are expected.
A weaker yuan would make Chinese purchases of US farm goods relatively more expensive, a bearish factor for US soybean and corn export demand.
investinglive.comJun 22, 2019After 40 past bullish trade events, Chinese Yuan (CNY per USD) moved a median +0.6% over 5 sessions (75% higher; middle half +0.0% to +1.4%), and +1.1% over 20.
After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% over 20.
After 683 past bearish trade events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and +0.3% 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.
