Stocks and markets all around the world are trying to recover from the fall taken by Asian segment of the market after trading opened there yesterday. Because of coronavirus spreading across the country it is no wonder that traders and investors want nothing to do with anything connected with China. And it is reflected in the performance of USD/CNY chart as well.
USD, being stronger because of its safe haven status and coronavirus going across the world are of course pushing on Chinese yuan. And yuan is getting weaker and weaker with traders running from the currency. Even though China is already trying to deal with the virus by asking other countries for help, it still seems that we are quite far away from its seizing. And it is easy to predict that if the situation with the virus is not going to start improving soon, we are not going to see any recovery in either indices or currency.
Is CNY really going to suffer? Well, yes. Already the impacts for Chinese economy are very serious. And we are not even close to the end of the outbreak. Apple have closed all its business in China. Countries stop exporting Chinese goods. A lot of Chinese workers are sitting at home without doing anything. All of this is going to have a long term effect on yuan and economic performance of the country. And the longer the outbreak is going to last, the worse the impact is going to be.
For now, all we have to do is sit by and wait for some resolution of the situation. If you do trade USD/CNY couple, be sure to use our trading signals.