This pair represents the US Dollar against offshore Chinese Renminbi. The Renmibi is also often referred to as the Yuan in its unit designation and uses the letters CNY when trading inside of China. The Yuan used to be pegged to the US Dollar but is now allowed to trade a limited distance against the reserve currency on a daily basis. China is the world's largest exporter and remains the second largest economy, behind the United States. China has used its control over its exchange rate to help ward off global financial crisis and maintain its dominant trade position - an effort that has drawn accusations that it is manipulating its currency.
My trading video for today: '$USDCNH and $EURUSD May Feel the Impact of Phase One More than the Dow' https://www.dailyfx.com/forex/video/daily_news_report/2020/01/16/USDCNH-and-EURUSD-May-Feel-the-Impact-of-Phase-One-More-than-the-Dow.html https://t.co/AHlURKL1q8
The US and China have an agreement to avoid competitive devaluations on their exchange rate, but in practice, it will likely have some measure of seeing the Yuan higher (USDCNH) to appease the White House and prevent inevitable interpretation of stealth devaluation
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