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A Push Toward a Steady Chinese Yuan Is Expected to Help the Euro

  • U.S.-China pact would lift sentiment and boost euro: MUFG, ABN
  • A trade deal would support the euro, but headwinds remain: ING
China Says Bank Lending Targets Shouldn't Override Due Diligence

Photographer: SeongJoon Cho/Bloomberg

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A steady yuan will be just what the euro needs as it tries to shake off regional economic weakness, according to analysts.

Europe’s common currency advanced in tandem with the yuan this week after the U.S. asked China to keep their exchange rate “stable” amid growing signs the world’s two biggest economies are making progress in trade negotiations. A successful resolution could support the euro given the close links between Europe and China, as well as via any boost to risk sentiment, analysts said.