🇨🇳 The yuan is flexing, and the market is paying attention 👀
Since July, $CNY/USD has been climbing, now sitting around $0.1497.
Translation: $1 buys ~6.68 yuan today, down from ~7.08 last November. That's roughly a 5% glow-up for the yuan 💪
Why the rally?
▫️ The $USDC is losing steam
▫️ China's massive trade surplus = lots of demand for yuan
▫️ The US-China rate gap is shrinking
The catch: Beijing keeps the yuan on a leash 🐕
If China starts setting weaker daily rates, that's the signal they want to hit the brakes on the climb. Watch that space. 📊
Since July, $CNY/USD has been climbing, now sitting around $0.1497.
Translation: $1 buys ~6.68 yuan today, down from ~7.08 last November. That's roughly a 5% glow-up for the yuan 💪
Why the rally?
▫️ The $USDC is losing steam
▫️ China's massive trade surplus = lots of demand for yuan
▫️ The US-China rate gap is shrinking
The catch: Beijing keeps the yuan on a leash 🐕
If China starts setting weaker daily rates, that's the signal they want to hit the brakes on the climb. Watch that space. 📊