Trump Tariff Threat Has Yuan Traders Starting to Prep for Impact
- Gauge of expected FX volatility around the US election jumps
- Traders remembering swings seen during US-China trade war
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Nine months before the US presidential election, Donald Trump is tiptoeing into the minds of China currency traders.
With the former president seemingly a lock for the Republican nomination, investors are preparing for a possible return to the days of the US-China trade war which steamrolled the yuan during his term in office. Trump has suggested revoking China’s “most favored nation” status for US trade and hinted at tariffs of more than 60% on its goods.