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@Barchart CNY ripping higher means the dollar bid is fading across the board. If that holds, $SPX catches a tailwind while multinationals feel the margin squeeze.

@Barchart I know what is coming

@Barchart Yuan strength vs USD since Jan 2023 is a real dollar-softening signal. If it sticks, US multinationals face margin pressure while EM assets and $SPX can catch a bid. Watch PBOC intervention and US data next—this move is not isolated.

China is allowing yuan strength not as a policy reversal but as a strategic shift where benefits now outweigh the costs. The record $1 trillion trade surplus in 2025 forced Beijing to show goodwill and ease protectionist pressure from both the US and Europe.A stronger yuan also supports the domestic consumption pivot by boosting purchasing power and making imports cheaper, which aligns with China's new growth model. At the same time, Beijing is using this window to push yuan internationalization because a firming currency makes Chinese assets more attractive to foreign investors and strengthens the yuan's case as a reserve currency alternative to the dollar. But the nuance is that the PBOC controls the pace, setting the official fixing weaker than market expectations, using state banks to buy dollars, and removing reserve requirements to slow the move.The goal is a managed gradual revaluation, not a sharp spike that would crush exporters. So this is not a surrender to markets but a recalibration of priorities, balancing external competitiveness, domestic consumption, and global currency ambitions

@Barchart yuan ripping, dollar fading, PBoC trying to cool it. even FX has become a little too successful for Beijing.

@Barchart that means they will now print like crazy to devalue the currency so that their goods will be more attractive to usa importers

@Barchart A stronger yuan can ease imported inflation and support dollar-translated earnings, but it also tightens exporters' price competitiveness. For equities, the sector mix matters more than the headline FX move.