Marcus Ashworth, Chief Market Strategist for Haitong Securities, joined Nick Batsford and Zak Mir, technical analyst for Zak’s Traders Café, on the Tip TV Finance Show to discuss the Yuan and the recent events in China, plus a look at the bond market.
Depreciation of the Yuan against the USD main aim
Ashworth began by noting the change on Friday over FX Trading, with brokers in China now applying for FX licences. He continued that China have pegged the Yuan to the USD since 2009, but to the majority of other currencies the Yuan has strengthened massively. Ashworth believed the Chinese are diverting attention away from the USD/CNY, so they can then depreciate the Yuan against the USD.