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Articles from Caixin Global

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Cross Asset Strategy

<ul><li>Yuan / In Depth: Behind the yuan’s tumble against the dollar</li><li>Juvenile / China seeks to prevent sealed juvenile criminal records from being leaked</li><li>Carbon / China lays out fiscal tools to reach carbon neutrality by 2060</li></ul>

Yuan / In Depth: Behind the yuan’s tumble against the dollarJuvenile / China seeks to prevent sealed juvenile criminal records from being leakedCarbon / China lays out fiscal tools to reach carbon neutrality by 2060

CX Daily: Behind the Yuan’s Tumble Against the Dollar

Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

Cross-Asset Liquidity Strategist

Implementing Research Using Alt Data & AI

CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


<ul>
<li>
 Chinese economy skidding badly, buffeted by C-19 lockdowns and strong US dollar. Domestic economic weakness alongside strong dollar are two critical facts. </li>
<li>
US dollar has been weaponized and pointed towards the Chinese Yuan. Growing pressure on Yuan to devalue </li>
<li>
US policy is to drive Fed balance sheet lower and US dollar higher, forcing credit funders back to the US unit</li>
</ul>



 Chinese economy skidding badly, buffeted by C-19 lockdowns and strong US dollar. Domestic economic weakness alongside strong dollar are two critical facts. 

US dollar has been weaponized and pointed towards the Chinese Yuan. Growing pressure on Yuan to devalue 

US policy is to drive Fed balance sheet lower and US dollar higher, forcing credit funders back to the US unit


Yuan Devaluation (CNY): China At A Turning Point?

<ul><li>China eases Covid-19 test rules for air travelers from more countries</li><li>Global investors continue to dump yuan bonds as Treasurys, dollar rise</li><li>Chinese President Xi Jinping pledges to open door wider to world</li></ul>

China eases Covid-19 test rules for air travelers from more countriesGlobal investors continue to dump yuan bonds as Treasurys, dollar riseChinese President Xi Jinping pledges to open door wider to world

CX Daily: China Eases Covid-19 Test Rules for Air Travelers From More Countries

Fixed Income and Currency Strategist

Gautam Jain, PhD, CFA

FX & Rates

<ul>
<li>The dollar has strengthened significantly since Russia's invasion of Ukraine, which has led to a broad risk-off environment. Among EM currencies, the worst performer has been the Hungarian forint. </li>
<li>Adding to the economic woes resulting from Russia's aggression, the forint has suffered as the central bank has signaled less aggressive monetary tightening even with inflation hitting a two-decade high.</li>
<li>PM Orban has worsened the situation with his pre-election spending and by going against the EU by resisting further sanctions on Russia. Relatedly, funding from the EU is at risk.</li>
</ul>


The dollar has strengthened significantly since Russia's invasion of Ukraine, which has led to a broad risk-off environment. Among EM currencies, the worst performer has been the Hungarian forint. 
Adding to the economic woes resulting from Russia's aggression, the forint has suffered as the central bank has signaled less aggressive monetary tightening even with inflation hitting a two-decade high.
PM Orban has worsened the situation with his pre-election spending and by going against the EU by resisting further sanctions on Russia. Relatedly, funding from the EU is at risk.


Which EM Currency Has Suffered the Most Since Russia’s Invasion of Ukraine?

<ul>
<li>In line with my view that the dollar remains strong in the near term, one of the trading strategies that I have suggested is relative-value trades within EM currencies.</li>
<li>The volatility of EM currencies continues to rise, which in theory is supportive of relative-value trades as such environments are usually accompanied by wide dispersion among EM currencies. </li>
<li>However, I find that cross-correlations among EM currencies have risen, leading to a narrowing of dispersion between them, which means the environment is no longer supportive of relative-value trades.</li>
</ul>


In line with my view that the dollar remains strong in the near term, one of the trading strategies that I have suggested is relative-value trades within EM currencies.
The volatility of EM currencies continues to rise, which in theory is supportive of relative-value trades as such environments are usually accompanied by wide dispersion among EM currencies. 
However, I find that cross-correlations among EM currencies have risen, leading to a narrowing of dispersion between them, which means the environment is no longer supportive of relative-value trades.


Is the Environment Supportive of EM FX Relative-Value Trades?

China

The Chinese renminbi (yuan) is the official currency of The People's Republic of China. 

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CX Daily: Behind the Yuan’s Tumble Against the Dollar

Yuan / In Depth: Behind the yuan’s tumble against the dollar. Juvenile / China seeks to prevent sealed juvenile criminal records from being leaked

Caixin Global

Yuan Devaluation (CNY): China At A Turning Point?

Domestic economic weakness plus strong US dollar expose China's fragile position. C-19 lockdowns have hard-hit the economy, but PBoC being forced...

Michael J. Howell

CX Daily: China Eases Covid-19 Test Rules for Air Travelers From More Countries

China eases Covid-19 test rules for air travelers from more countries. Global investors continue to dump yuan bonds as Treasurys, dollar rise

Caixin Global

Which EM Currency Has Suffered the Most Since Russia’s Invasion of Ukraine?

Adding to the economic woes from Russia's aggression, the Hungarian forint has suffered as the central bank has signaled less aggressive monetary...

Gautam Jain, PhD, CFA

Is the Environment Supportive of EM FX Relative-Value Trades?

The rise in the volatility of EM currencies should in theory be supportive of relative-value trades, but of late, the dispersion between them is...

Gautam Jain, PhD, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)