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US to drop China's currency........>

EMERGING MARKETS
EMERGING MARKETS: US to drop China's currency manipulator tag
- CNH had a great start to the week, rallying against the USD and EMFX more
broadly as Bloomberg confirmed rumours that the US are to drop the 'currency
manipulator' tag ahead of the signing of the phase one trade deal this
Wednesday. Whether the move by the US is in response to a change in policy from
China or is merely political to soothe tensions remains to be seen, but USD/CNH
hit the lowest levels since late July ahead of the close. CNH bulls now eye the
6.8168 mark as the medium-term target, but progress could slow as the PBOC look
to stem outsized volatility.
- Elsewhere, TRY continues its firm performance for 2020, and the reversal of
fortunes between the TRY and the ZAR puts the cross on track for its 8th up day
in 9, prompting TRY/ZAR to near in on the 50-dma at 2.4901.
- Turkish industrial production, Hungarian CPI and the December trade balance
data from China are the highlights Tuesday.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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