Yuan Falls In APAC Trade

“It has been a tortuous start to the year on the offshore yuan trading desk as funding conditions continue to wrong foot market participants,” said Stephen Innes, senior trader at Oanda in the latest report.

“Despite some semblance of order emerging, we should expect volatility to remain high.”

Innes also expects the underlying yuan depreciation pressures to return, “because the fundamental reasons that are driving depreciation, such as capital outflows and concerns on Trump’s China policies, haven’t changed”.

“Although the offshore yuan moves have put traders on edge, the global impact is not in the same league as the turmoil created last year,” added Innes.

“Moreover, as history so often repeats itself in the forex world, we should expect the yuan to resume its course of depreciation post Trump’s inauguration and at the latest past the Lunar New Year.”

South China Morning Post

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

Latest posts by Stephen Innes (see all)