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China FX Firms Further, USD/CNY at Fresh Multi-Year Low

FOREX
  • Currencies markets are steady early Thursday, with most major pairs respecting recent ranges and not troubling any nearby support/resistance levels.
  • Strength in China FX remains a focus, with both CNY and CNH pressing higher in European hours to trade at the best levels against the USD since mid-2018. The strength in Chinese currencies come despite repeated reports throughout the week of state-run banks looking to buy USD in order to curb the rally in the Chinese currency.
  • Data picks up Thursday, with weekly US jobless claims, prelim durable goods orders numbers and the secondary reading for Q1 US GDP. Pending home sales data could also take some focus given the miss on expectations for new home sales earlier in the week.
  • Central bank speak picks up further, with BoE's Vlieghe and ECB's de Guindos, Weidmann & Schnabel all scheduled.

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