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The trade deal between the US and China was stone dead from the outset, according to analysts at Nordea who recommend to buy the USD/CNH pair. 

Key quotes

“The trade deal was stone dead already from the outset, but no one had an incentive to reveal it until after the US election. The Corona virus has offered the Trump administration an opportunistic chance to opt for China bashing instead.”

“We would be surprised if the PBoC didn’t allow USD/CNY to slowly but surely pave its way higher towards November, given the crystal-clear risk of a re-escalation of the tariffs war and continued issues of rebooting credit growth in China. More PBoC easing and more exported disinflation coming up.”

“We buy USD/CNH with a target of 7.3850, and a S/L at 6.9520.”