USD/CNH having a look > CNH7.1000,.......>

CHINA YUAN: USD/CNH having a look > CNH7.1000, though seemingly failing to hold

above for the time being, last +75 pips at CNH7.0970. Consolidation above the

figure & CNH7.1048, the 76.4% retracement of this month's pullback, would allow

bulls to turn their focus to the recent high at CNH7.1400. The USD/CNY mid-point

was fixed at the highest level since March '08, although that was slightly below

mkt exp. (which initially provided some support to the yuan).

- Looking to news flow. It is worth highlighting that Chinese state media hit

back at claims by U.S. off'ls that China was failing to crack down on the flow

of fentanyl into the U.S. & that responsibility for opioid abuse lays with

users. This matter has been highlighted by Trump on several occasions.

- Elsewhere, a piece in the FT got some attention in the London/NY crossover on

Thursday. It read "top Chinese bankers in London are warning of the drama that

would follow any US attempt to weaken the USD by intervening in renminbi markets

- a move that would be seen by Beijing as a "political act". The risks of such

action have heightened since June, said analysts."