As we all know for the last years and a half trade war was raging around the world. It is a known fact that Trump imposed trade tariffs in China as he claimed there was a trade deficit between the countries. And we have waited for a long time for the two counters to resolve their problems and sign a trade deal as trade war was affecting everyone. Surely, this day was bound to come sooner or later, and here we are – the day has come!

Overnight Trump and Chinse Deputy Prime Minister have signed a document, effectively ending phase 1 of trade talks. Surely, USA couldn’t do without surprises as just yesterday it was announced that American tariffs towards China are going to remain in place. But, the signing took place anyway and we are now interested to look at the dynamic between USD and CNY – Chinese yuan.

And, the situation does not differ that much from what we thought we would see, precisely the chart is falling lower, indicating that yuan is overtaking USD and has the power to fight against the greenback bully. That is not a surprise, exactly, as we were expecting just something like that. Why? Well, we as traders prefer fresh meat, so to say, and yuan is just the thing we need right now. In this case USD is old news, so there you go – Chinese economy is going to be interesting once again and yuan pushing against the greenback is the proof of it.

If you want to learn more about relations between USD and CNY, you can always use our trading signals

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