MNI: PBOC Net Drains CNY413.7 Bln via OMO Wednesday

CHINA PBOC CONDUCTS CNY17.3 BLN VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Lower At 7.0993 Weds; +2.87% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.0993 WEDS VS 7.1016

MNI CNB WATCH: 25bp Cut To 4.00% Seen, Fresh Projections Due

MNI China Daily Summary: Tuesday, November 5

EZ/UK Bond Supply Calendar: 15/20-Year Bunds Due Wednesday

MNI: US ISM OCT SERVICES COMPOSITE INDEX 56

MNI: US OCT FINAL SRVCS PMI 55.0 (FLASH 55.3); SEP 55.2

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CNH: USD/CNH Little Changed In Early Dealings, Vol Surges Wide Ranges Likely

CNH
EM BulletAPACChinaEmerging Market NewsBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

USD/CNH was last near 7.1050, little changed for the session. Ranges so far today have been 7.0906-7.1097. Markets await the US election outcome, with Tuesday USD/CNH overnight vol topping 30%, so volatility is clearly expected today. USD/CNY spot finished up at 7.1047 on Tuesday. 

  • The overnight implied probability puts the USD/CNH range at 6.9750-7.2077, with a 70% probability. For the next week, the implied range is slightly wider at 6.9321-7.2475.
  • Outside of US election risks, where the yuan is clearly seen at risk from Trump win/Republican red wave, we are also watching for details of the current NPC.
  • Governor Pan recommended to the NPC that both monetary and fiscal policy should continue to be accommodative and that the intensity of countercyclical adjustments should increase.
  • His statements followed news of the committee’s discussions on lifting the debt ceiling for local governments and is being interpreted by some as a hint of caution.

 

150 words

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.

USD/CNH was last near 7.1050, little changed for the session. Ranges so far today have been 7.0906-7.1097. Markets await the US election outcome, with Tuesday USD/CNH overnight vol topping 30%, so volatility is clearly expected today. USD/CNY spot finished up at 7.1047 on Tuesday. 

  • The overnight implied probability puts the USD/CNH range at 6.9750-7.2077, with a 70% probability. For the next week, the implied range is slightly wider at 6.9321-7.2475.
  • Outside of US election risks, where the yuan is clearly seen at risk from Trump win/Republican red wave, we are also watching for details of the current NPC.
  • Governor Pan recommended to the NPC that both monetary and fiscal policy should continue to be accommodative and that the intensity of countercyclical adjustments should increase.
  • His statements followed news of the committee’s discussions on lifting the debt ceiling for local governments and is being interpreted by some as a hint of caution.