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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CNH
CNY was fixed stronger for the 4th straight day, but upside pressure on USD/CNH persists, with the spot crossing firmly above CNH6.7000 as we type.
- The USD/CNY fix printed at CNY6.6332 versus CNY6.6379 market consensus, a positive CNY surprise to the tune of 47 pips.
- The last 5 sessions has seen the CNY fixed 145 pips stronger in total.
- Upside pressure on USD/CNH persists though.
- The overnight recovery in the DXY, higher US yields and weaker equity sentiment all helping broader USD sentiment.
- Around the time of the USD/CNY fix, US yields took another leg higher.
- USD/CNH has subsequently broken above resistance at CNH6.7000, last trading at CNH6.7191, up ~370 pips on the day.
- The post-fix upleg took the pair to its highest point since early November. The next layer of resistance has been defined at Nov 4, 2020 high of CNH6.7745, while bears look for a pullback below Wednesday's low of CNH6.6118.
Fig 1. USD/CNH versus USD/CNY fixing error term
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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