City Index: ‘major negative knee-jerk reactions’ in EM if yuan breaks 7.00
Dollar tends to strengthen against sterling and euro on Brexit crisis and escalating US-China tension
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USD/CNH is likely to see further appreciation on the back of a stronger dollar environment in general and further capital outflows, where a break above 7.00 could trigger “major negative knee-jerk reactions in emerging markets financial assets”, according to Kelvin Wong, chief technical strategist, Asia, at City Index in Singapore.
A “forced relocation of resources back to the US” in its trade war with China would
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