“At the end of the day, as long as the Chinese yuan weakens against the USD, the US won’t be happy and would accuse China to have manipulated its currency. In the meantime, China is aware of that and is seemingly prepared to pay the price of such a move,” saysd Hao Zhou, an analyst at Commerzbank. “It is hard to see any meaningful de-escalation unless either side feels the real pain. So in my opinion, there is no limit on the trade tensions for now, and the market needs to prepare for more volatility.”
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