Meanwhile, other analysts highlighted a range of factors, including a possible reset in trade relations with the US trade under a Trump administration.
“A toxic combination of steeper US yield curve, along with the ever present discussion of a trade war with the US, dominates the current currency landscape, which favours a weaker yuan,” said Stephen Innes, senior trader at OANDA. “The inflating mainland asset bubbles and uncertainty over China’s growth trajectory will continue to provide a tailwind for the current US dollar move higher.”
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