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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
CNH TN points move to the highest level seen since early February, signalling tighter liquidity in offshore yuan markets.
- State-backed banks will likely be withdrawing liquidity in a bid to limit/slow further yuan weakness.
- That comes after Friday saw an uptick in yuan devaluation discussions as the PBoC allowed USD/CNY to move above CNY7.20 for the first time this year.
- The Bank has since deployed a firmer bias against yuan weakness via its mid-point fixing.
- Medium-term, the Chinese macro policy easing bias and growth worries are set to continue to weigh on the yuan.
- We have previously flagged that any further yuan weakness will be managed by the authorities, given their well-documented preferences surrounding currency levels/movement.
Fig. 1: USD/CNH TN Forward Points
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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