Yuan strengthens on risk tone
The 7.00 level had been muted a few months ago as the PBOC's possible intervention level. The return to it and close below the 7.00 handle will be a sign of reassurance that risk is on and the 'Phase 1" trade deal is restoring calm to financial markets. Longer term, we will have to see. For now, the market is increasingly reassured and with equities picking uo across the world that in itself will lift sentiment.
