Analysts at Deutsche Bank offer probable outcomes of the November US Presidential election and their impact on the Chinese yuan against the greenback.
“A Biden win in the US presidential election would lead to a weaker USD/yuan, irrespective of which party controls the Senate.”
“If Biden wins but the Senate stays in the hands of the Republicans, the result is less aggressive fiscal policy but likely places more pressure on Fed to ease again. Thus, meaning more pressure for CNY strength.”
“If Biden wins and Senate majority switches to Democrats, it would result in larger fiscal stimulus, which would weigh on USD/yuan and also would boost EUR and yen.“
"If China and the US still embrace the 'decoupling' momentum set in train by Trump, this is negative for USD reserve accumulation and enhances the spillover from USD/CNY onto strength in other reserve currencies."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.