We take a loss on our long USD/CNH position via a 12M 1:1:2 ratioed seagull.
We see further upside risk in EUR/USD in the near term which, given current correlations, implies further downside risk to USD/CNH.
For EUR-based corporates, we continue to recommend hedging receivables as we expect EUR/CNY to continue higher in tandem with a move up in EUR/USD.
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