USD/CNH has completed a full 78.60% retracement of the December sell-off as the Yuan takes a coronavirus beating. The US dollar has also been a relentless factor pressuring emerging markets and the Chinese currency. People’s Bank of China pumping stimulus, but markets looking for more. We have seen weakness in the yuan this year fulled by end of year flows in 2019 and the impact of a strong US dollar as well as the coronavirus. The currency pair has reverted towards the December highs, completing a 78.60% retracement of the range YTD. China’s central bank, PBoC, cut rates last week on two separate occasions, but markets noted the caution action and are expecting more which will be required, hence there was little reaction compared to the currency’s movements in response to new cases of the virus since 20th January 2020. Markets are pinning hopes on fiscal stimulus. China will want to limit the amount of loans that go into asset and investment markets, so long term loaning is off the agenda, for now. Elsewhere, however, there is little room for additional stimulus. Some central banks are already experimenting with aero interest rates. The Federal Reserve and European Central Bank and other central banks are probably counting on increased fiscal stimulus from governments. Either way, more monetary policy easing in 2Q20 will likely be on the cards from China to support the economy to recover from the ongoing epidemic. Coronavirus latest The latest is that there are now 78,854 confirmed cases of novel coronavirus and 2,465 deaths worldwide, according to with the majority of the cases and deaths being reported in mainland China, followed by Japan and South Korea. Here are the top five countries to have experienced outbreaks beyond China: Japan: 738 cases, 3 deaths, (639 cases on Diamond Princess cruise ship and 99 on land). South Korea: 602 cases, 5 deaths. Italy: 132 cases, 2 deaths. Singapore: 89 cases. Hong Kong: 74 cases, 2 deaths. – more on that here, however, while the numbers of new confirmed cases begin to increase again, then the yuan will be even weaker against the dollar. The US dollar has been supported YTS by a host of tailwinds, although Friday’s data took some wind out of its sails, with the DXY dropping from the highest level in a decade, a few points from the 100 level in the DXY, by 0.70% to a low of 99.23. This week will give us more to go on from the economic data side of things with the Federal Reserve’s preferred inflation measure – PCE Inflation. USDCNH levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/IDR Price Analysis: At seven-week top, probes six-month-old resistance trendline FX Street 2 years USD/CNH has completed a full 78.60% retracement of the December sell-off as the Yuan takes a coronavirus beating. The US dollar has also been a relentless factor pressuring emerging markets and the Chinese currency. People's Bank of China pumping stimulus, but markets looking for more. We have seen weakness in the yuan this year fulled by end of year flows in 2019 and the impact of a strong US dollar as well as the coronavirus. The currency pair has reverted towards the December highs, completing a 78.60% retracement of the range YTD. China’s central bank, PBoC, cut rates last week on… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.