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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.
CHINA
- Selling pressure on Chinese Yuan was intense in the second half of April, with USDCNY reaching a local high of 6.65 during the overnight session before consolidating lower.
- USDCNY is up 3.5% in the past two weeks, registering its largest 2W change since 1994 (+4.5% at the 6.65 peak) and surpassing the August 2015 move, which generated a market shock.
- As a result, EM currencies have been under stressed in the past two weeks; to the exception of the Ruble, all EM currencies are down against the US Dollar.
- ‘Risk on’ ZAR is the worst performing currency, down over 8% against the US Dollar.
- We previously saw the CNY weakness has been the major driver of ZAR lately (correlation between CNY and ZAR surges when implied vol on CNY spikes).
- In addition to China officials’ easing signals (rate cuts + rebound in ‘liquidity’), renewed geopolitical tensions, hawkish Fed comments and the acceleration of the economic slowdown have all been supporting the greenback.
Source: Bloomberg/MNI
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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