Why the US dollar’s mini-revival won’t take the wind out of the yuan rally

South China Morning Post/Neal Kimberley

photograph of 100 yuan and $100 bills“Yuan bulls should remain calm. A sinking US dollar might have gained some relief last week on the back of an uptick in yields on the benchmark 10-year US Treasury note, but that respite is likely to prove short-lived. The greenback’s mini-revival rests on weak foundations, and economic circumstances still favour the renminbi.”

USAGOLD note:  Many FOREX analysts see the yuan as lead dog in the currency race …… Neal Kimberley is an experienced market analyst having worked for many years as a trader at major banks in London.  He is now a market analyst at Thomson Reuters.

Repost from 1-26-2021

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