A crunch point for my USDCNH shorts

Since August, I’ve been shorting USDCNH in rallies towards the 7.0 level and offloading in the dips. With the G20 meeting coming up and a sideline meeting between Trump and China’s Xi, I’m going to be looking to reduce my risk further, should the price full further in anticipation of their meeting.

I personally don’t think that the meeting will herald anything new, or more positive than we’ve already got. We’re hardly likely to be getting a trade deal confirmation, so the most we should expect, on the positive side, is a commitment to increase negotiations. There is of course a real risk that Trump comes back from the meeting proclaiming that China hasn’t budged on their stance and so more tariffs will be coming. Either way, it’s a potentially high risk event.

I spoke about it in more detail to the folks at Core Finance today.

I’ve not been alone in trading USDCNH successfully from the short side and these are the sorts of trade ideas and strategies we share regularly on the ForexFlow platform. If you want to be part of our growing community of traders, you can join us here.

Ryan Littlestone

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