Rapid Currency Fluctuations: CNY Advantage

The news strongly supports rising Chinese export competitiveness in Europe: European scrutiny of China's trade surplus, an export boom, and pressure on Beijing's yuan policy all point that way. However, that competitiveness comes from an undervalued, weakening yuan (including its biggest daily drop in six months), which implies the euro held firm or strengthened against the yuan. That partially matches the falsification criterion that the euro 'stabilizes or strengthens against the Yuan', and there is no evidence of rising demand for CNY assets over EUR, so the currency half of the thesis is undermined while the competitiveness half is supported.