đ¨ DOLLAR UNDER PRESSURE đ¨
Yuan Breaks Below 7.00 â Strongest Since Mid-2023 đ¨đłđđşđ¸
Forex markets are kicking off 2026 with a major shift. The Chinese Yuan has pushed decisively below the key 7.00 USD/CNY level, marking its strongest position in over 2.5 years.
The dollarâs dominance is being tested â and this move could be bigger than it looks đ
đ Why the Dollar Is Weakening ⢠Debt Fears: US national debt at extreme levels, raising long-term confidence concerns
⢠Bad 2025 Close: USD just finished one of its weakest years in decades
⢠Trend Continuation: Downside momentum is carrying into the new year
đ Why the Yuan Is Strengthening ⢠PBOC Stance: Chinaâs central bank easing resistance, allowing appreciation
⢠Trade Giant: Record $1T+ trade surplus driving global Yuan demand
⢠Capital Rotation: January rebalancing pushing funds from US assets into Asia & EMs
â ď¸ What This Means Going Forward ⢠Travel: USD buys less across China & Asia
⢠Imports: Chinese goods (tech, electronics) may get more expensive
⢠Macro Shift: Early signs of de-dollarization and changing global capital flows in 2026
đŹ Your Take?
Is this the start of a long-term Yuan uptrend â or just a temporary forex shakeout?
đđ