CNY has broken a major long term trendline against the US dollar. I believe there is more upside ahead for the Chinese Yuan.
The Chinese gov will try to talk down the Yuan to dollar but that will not work without some major government intervention. Just today, they announced a hike in reserve ratio requirements for the first time since May 2007. This move didn't work then and it probably won't work now. It may slow the acceleration though.
I would be looking for the Yuan to test its all time high of 16.66 area. Watch out for a throwback to .1558 area first.
The Chinese gov will try to talk down the Yuan to dollar but that will not work without some major government intervention. Just today, they announced a hike in reserve ratio requirements for the first time since May 2007. This move didn't work then and it probably won't work now. It may slow the acceleration though.
I would be looking for the Yuan to test its all time high of 16.66 area. Watch out for a throwback to .1558 area first.