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Citi Weigh In On USD/CNH Flows And Trading Desk Suggest Exiting Longs On Latest Headlines

CNH

Citi note that CNH participation remains relatively limited on the pull back from YtD highs, even with the previously outlined BBG sources report re: the potential for fresh Chinese property stimulus and Friday’s Chinese equity bid apparent.

  • They also note that there hasn’t been much appetite to fade the BBG headlines via fresh USD/CNH longs.
  • Their trading desk still believes that USD/CNH momentum has been facilitated by carry dynamics but suggest that the latest round of headline flow provides a reason to exit long USD/CNH positions, warning that the risk in the cross is titled lower near-term.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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