Yuan continues to weaken vs. USD

The Chinese renminbi was weaker against the dollar. On-shore Chinese yuan traded at 6.89, falling from levels below 6.80 before the U.S. election results, while the off-shore yuan traded at 6.90.

“A toxic combination of steeper U.S. yield curve, along with the ever-present discussion of a trade war with the U.S., dominates the current currency landscape, which favors a weaker yuan,” said Stephen Innes, a senior trader at OANDA.

Innes added worries over asset bubbles in the mainland and uncertainty over China’s growth trajectory will exacerbate the weakness in the currency.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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