FxWirePro: Daily Commodity Tracker - 21st March, 2022 
In an article published on May 25th, named, “FxWirePro: Yuan outlook changed from downside to upside for H2” available at http://www.econotimes.com/FxWirePro-Yuan-outlook-changed-from-downside-to-upside-for-H2-723970 we changed our Yuan outlook from bearish to bullish. Here is the part of the explanation or reasons behind our forecast from that article,
“in reality, the fate of the many promises of President Trump remains clouded with uncertainties as the White House remains dogged by accusations of collusion with Russia in 2016 election. It is also getting bombarded by damaging leaks and fake news that has engulfed not only White House but Capitol Hill too. In addition to that, President Trump has taken a softer stance towards China in exchange for China’s help to tackle threats of North Korea.
Moreover, after months of hawkish rhetoric from policymakers at the US Federal Reserve, recent commentaries from James Bullard, Robert Kaplan, and many others suggest that it is once again tilting in reverse.”
Since then, the dollar suffered further as other major central banks namely the European Central Bank (ECB) have signaled a reversal of easy monetary policies.
In a subsequent article, we extended the upside target for the yuan to 6.69 per dollar and in another subsequent article, we have recommended our readers to add additional short positions at the then rate of 6.81 per dollar as we deemed that the correction to be over.
The trade has been highly profitable as the yuan is currently trading at 6.75 per dollar. In this article, we would like to extend our final target from 6.69 per dollar to 6.57 per dollar. We expect the investors’ increasing affinity towards emerging market playing a role in the rise of yuan against the dollar.
Place stop loss above 6.88 for this trade.
