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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.
CNH
USD/CNH sheds around 100 pips as BBG source reports note that “China’s regulators are stepping up scrutiny of currency trading and cross-border capital flows,” having a shallow look below CNH7.2500.
- The piece went on to note that “the PBoC and SAFE have asked exporters, importers and banks about money flows and hedging demand, while seeking views on the yuan and trading sentiment,” while suggesting that “SAFE had also asked for suggestions to stabilize the currency, with a submission deadline of just a few days.”
- This comes after RTRS reports of USD/Yuan sales from state banks and an increased bias towards yuan strength in the mid-point fixing (relative to the BBG survey median) in recent days, as policymakers appear at least mildly concerned with the velocity of the recent run of yuan weakness.
- A quick reminder that our policy team’s most recent piece on the matter flagged that “the PBoC is expected to curb any sharp weakness in the yuan should a stronger-than-expected fixing for the onshore CNY fixing fail to slow its depreciation,” based on conversations with traders and policy advisors.
- The yuan continues to struggle, with USD/CNH moving to the highest levels seen since late ZCS times in recent sessions as the impact of carry, the negative run of recent Chinese economic data and an unfavourable policy mix weigh on the currency.
Fig. 1: USD/CNH
Source: MNI - Market News/Bloomberg
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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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