Onshore yuan posts sturdy rally as Trump tariff fears abate

The yuan forex was the primary line of protection towards Trump’s tariffs. And Beijing positively prepped for that because it allowed the forex to fall significantly since Trump gained the presidency in November. However after the latest talks between Trump and Xi, the yuan is now clawing again losses as tariff fears look to be subsiding.

The newest high for USD/CNY is across the 7.33 mark and with “optimistic talks” between Trump and Xi, it seems like China might be avoiding harsh tariffs – not less than for now. That is a far cry from the certain hearth promise from Trump throughout his marketing campaign that he’ll impose 60% tariffs on China.

If that is any indication of what Trump may do subsequent, it seems like Beijing is kind of sure that Trump and Xi have a sure understanding now that tariffs will simply stay as a risk for essentially the most half.

This text was written by Justin Low at www.ubaidahsan.com.



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