Flash: US rhetoric easing against Yuan - BBH

FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that in addition to the Chinese yuan's appreciation, the shrinking trade imbalances may be another factor that helping to ease the US rhetoric about the yuan.

They write, “The March US deficit of $17.9 bln was the smallest in three years. Lastly, in late May, the USDA revised down its estimate for US agricultural exports this year, but continues to anticipate a nominal record. A reduction of corn exports accounts for the lion's share of the adjustment. Note that the yuan is trading near 19-year highs against the dollar and is the strongest Asian currency thus far this year.”