The Morning Macro Call

Morning Macro Call - 01.09.2020 | VP FX & Macro Strategy


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USD/CNY moved 3 big figures lower today as it looks like China is now facilitating a strong yuan. Beyond portfolio inflows driving this rally – there's also a subtle shift in the PBoC's FX policy (as our latest charts show). Beijing may be more willing to accept idiosyncratic CNY strength to avoid Trump tariffs ahead of the US elections. Cost of a strong CNY lower than a US-China trade war right now.
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The Morning Macro CallBy VP FX & Macro Strategy