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*** The yuan ran higher on Monday as.....>

CHINA YUAN
CHINA YUAN: *** The yuan ran higher on Monday as fears over Trade Wars abated.
USDCNH last trades at 6.2450, after USDCNY closed Monday's session at 6.2730.
This could place further attention on the daily CNY fix, with some speculating
that the PBoC may decide to reel in some of the appreciation experienced over
the last 24 hours.
- As a reminder on Friday there was a MNI sources piece whereby a Chinese gov't
advisor noted that China may devalue the Yuan in the case of a trade war (See
Main Wire At 09:00 GMT 03/23). The article suggested that USDCNY may centre
around 6.3-6.4 in 2018 as the economy faces the possibility of a downturn in
H218 on the back of weak exports.
- From a technical perspective USDCNH's recent hesitation ahead of the 55-DMA
(6.3401) has taken its toll with an aggressive sell-off on Monday to fresh '18 &
3 year lows. Bears now focus on 6.1850-2130 last seen in 2015. Layers of
resistance have been left behind with bulls now needing a close above 6.2985 to
ease bearish pressure and above 3.3526 to hint at a shift higher in focus.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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