Free Trial

CNH Strength Apparent

CNH

USD/CNH trades down through CNH6.7000, into the low CNH6.6800s. Previously alluded to weekend comments from U.S. President Biden re: speaking with Chinese counterpart Xi "soon” will be helping the trajectory of the pair. The same holds true for comments from U.S. Tsy Sec Yellen, after she noted that some tariffs on China inherited from the Trump admin served "no strategic purpose," adding that Biden is considering removing them as a way to bring down inflation. Still, these comments were made over the weekend, and we haven’t seen any fresh catalysts to explain the recent ~2 figure dip in USD/CNH.

  • Note that earlier in the session we flagged a story doing the rounds from China’s state-owned Shanghai Securities News, which suggested that China is planning to take “extraordinary” measures to combat the divergence in upstream and downstream manufacturers’ profitability. The article suggests that the move looks to fend off risks surrounding investment, citing a senior researcher with a government thinktank. This hasn’t got much in the way of a wider airing.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

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.