According to @KobeissiLetter, the Chinese Yuan has appreciated to 6.91 against the US Dollar, reaching its strongest level since May 2023. The currency is on track for its seventh consecutive monthly gain, marking its longest winning streak since 2020-2021. This performance also places the Yuan as the third-best-performing currency globally in recent months, highlighting its robust momentum in the foreign exchange market.

According to @KobeissiLetter, hedge funds are ramping up bearish bets on the Japanese yen. According to @KobeissiLetter, leveraged funds raised net yen shorts by 35,624 contracts in the week ending January 13, the largest weekly increase since May 2015. According to @KobeissiLetter, this marks the first rise in bearish positioning over the last five weeks.

According to The Kobeissi Letter, the European Union is preparing further counter measures against the newly announced US tariffs of 20%, as reported by CNBC. This development could impact trading relations between the US and EU, potentially affecting the foreign exchange markets and European export businesses.

According to @KobeissiLetter, President Trump's announcement of 20%+ reciprocal tariffs on up to 25 countries could significantly impact global trade, as US tariffs are set to affect over $1.5 trillion worth of imports by the end of April. Traders should monitor these developments closely as they could lead to increased market volatility and affect commodity prices and foreign exchange rates.