The Chinese yuan, following the Russian ruble, continues to weaken against the dollar. It was announced today that Chinese banks are considering further cuts in deposit rates (the third cut this year) to stimulate the economy. From a fundamental point of view, the Chinese yuan should weaken, but from a technical point of view, given the approach of the price to important historical highs, this news can play into the hands of Chinese dollar holders – take profits at a very favorable price.
