Banking on the Yuan

Banking on the Yuan

Banking on the Yuan in one of our recent trades.

We had been keeping a close eye on the Yuan reaching the price of around 7 to the Dollar.

The Chinese have in recent times been devaluing their currency to help bolster exports, so we chose to take a long position towards the 7000 area, however this area looks like a strong buffer and price could soon be taking a reverse action from the build up of sellers in the area which we believe to be having an effect at 69713.5.

Noting a trade war between the US and China, could create a space for the Yuan to operate as a rival reserve currency.

We’ve decided to take the money off the table and be grateful for the £199.90 before price heads south.

the Yuan

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 


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