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USDCNH trades above Friday's highs at....>

CHINA YUAN
CHINA YUAN: USDCNH trades above Friday's highs at 6.9540 as the 6.98 level comes
into focus. The yuan's weakness is coming in spite of a recovery in stocks as
the dollar strengthens generally. 
- EURCNH trades at 7.8737 as the choppy downtrend from the Sep highs continues.
CNHJPY continues to trade in a tight range as the pair consolidates gains seen
at the start of the month. The yuan's real effective exchange rate remains stuck
in its tight range.
- While interest rate spreads are edging down from cycle highs, the drop in US
breakevens last week has supported real US yields, providing fundamental support
to the dollar. 

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