Nordea go long USD/CNH with a target.....>

CHINA YUAN: Nordea go long USD/CNH with a target of CNH7.3850, and a stop loss

at CNH6.9520.

- They note that the "trade deal between US and China was stone dead from the

outset, as e.g. the USD 32bn increase in agricultural purchases (from a base

below USD 10bn pro anno) was almost practically impossible to implement due to

low commodity prices. When Corona entered the limlight (maybe China already knew

about Corona by the time of the signing ceremony), it was essentially 100%

certain that none of the thresholds in the trade deal would be met. We would be

surprised if the PBoC didn't allow USD/CNY to slowly but surely pave its way

higher towards November, given the crystal-clear risk of a re-escalation of the

tariffs war and continued issues of re-booting credit growth in China. More PBoC

easing and more exported disinflation coming up."