• USD/CNY edged higher on Thursday as investors evaluated the impact of an escalating global trade war.
•U.S. President Donald Trump on Wednesday warned of imposing further tariffs on European Union goods, escalating trade tensions between the two economies.
• China’s 10-year bond yield has risen over 20 basis points since February, driven by waning expectations of a near-term rate cut and tight liquidity in the interbank market.
• Traders are keeping a close eye on U.S.-China trade negotiations and possible economic stimulus measures from China following its recent parliamentary meeting.
• At GMT 07:17,the dollar was up 0.06% at 7.239 against Chinese Yuan .
• Immediate resistance is located at 7.241(50%fib), any close above will push the pair towards 7.264(61.8%fib)
• Support is seen at 7.216(23.6%fib) and break below could take the pair towards 7.214(Lower BB).
Recommendation: Good to sell around 7.240, with stop loss of 7.280 and target price of 7.200
