Back in April, we thought trade negotiations were progressing well. We were wrong. China has since demanded a revision to the terms of the draft trade deal which it says are “disrespectful” to China. This move has rocked the market globally. USD/CNY jumped from 6.7349 at the end of April to 6.7915 at the open of the first trading day in May. This change of sentiment means the yuan is going to depreciate rather than appreciate for the rest of the year. China also wants to leverage the yuan’s depreciation, showing that it does not intend to appease the Trump administration, which has urged Beijing to stabilise the value of … (full story)