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CNH: USD/CNH Hits Multi Month Highs, 12 month Implied Vol Nears 7%

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USD/CNH sits just off session highs, last around 7.2670. Earlier we got to 7.2728, fresh highs in the pair back to July of this year. Trump tariff headlines has boosted broader USD sentiment. The BBDXY is up 0.50%, with CNH losses of 0.30% at this stage, continuing the yuan's lower beta with respect to broader USD shifts. 

  • We have the USD/CNY fixing coming up, which will no doubt lean against near term yuan depreciation pressures. Upside focus for USD/CNH is likely to rest on the 7.3000, where we last traded above in early July of this year.
  • USD/CNH risk reversals are bid but remain off recent highs from Oct. The 1 month is still negative at -0.26, Oct highs were at 0.3425. The 1yr is at 0.8100, Oct highs were 0.8850.
  • In the implied vol space, the 1 month is firmer, still close to recent lows sub 5%. 1yr continues to trend higher though, last above 6.89%, fresh highs back 2022. 
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USD/CNH sits just off session highs, last around 7.2670. Earlier we got to 7.2728, fresh highs in the pair back to July of this year. Trump tariff headlines has boosted broader USD sentiment. The BBDXY is up 0.50%, with CNH losses of 0.30% at this stage, continuing the yuan's lower beta with respect to broader USD shifts. 

  • We have the USD/CNY fixing coming up, which will no doubt lean against near term yuan depreciation pressures. Upside focus for USD/CNH is likely to rest on the 7.3000, where we last traded above in early July of this year.
  • USD/CNH risk reversals are bid but remain off recent highs from Oct. The 1 month is still negative at -0.26, Oct highs were at 0.3425. The 1yr is at 0.8100, Oct highs were 0.8850.
  • In the implied vol space, the 1 month is firmer, still close to recent lows sub 5%. 1yr continues to trend higher though, last above 6.89%, fresh highs back 2022.