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With USDCNH trading in a stable..........>

CHINA YUAN
CHINA YUAN: With USDCNH trading in a stable fashion today despite some
broad-based dollar strength, yuan crosses are coming under downside pressure. 
- EURCNH is off its daily lows but still shows signs of struggling to capitalize
on the recent breakout above 8.0. 
- GBPCNH is also back below 9.0 as yesterday's recovery was unable to cling to
this level. Last week's unsuccessful close above here, marking the fifth such
time this year, suggests downside risks are rising. 
- While UK and German yields have been heading higher, so too have inflation
expectations, which has kept real yields under downward pressure reducing
fundamental support for continued gains in these cross markets. 

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