Yuan trading has been flat for most of August 2018. Prices have drifted between 6.8 and 6.9 for most of the month. This is contrast to previous months. As seen in the figure below July showed an upward momentum that August umbers have not been able to match. The lack of upward momentum in yuan prices is evident when looking at the MoM % changes. The MoM % changes particularly toward the end of August to near zero. We believe the yuan is underweight in an attempt to fend off the impact of a strong dollar.