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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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Free AccessContinued Minimal Deviations Between Mid-Point Fixing & Expectations
The PBoC USD/CNY mid-point fixing continues to show a minor bias towards a weaker yuan when compared to broader market expectations, although the deviation between the two is limited, as shown in the chart below i.e. the PBoC hasn't shown much in the way of outright, overt pushback against the recent strengthening, at least from a fixing perspective. A quick reminder that the CFETS RMB index moved to the highest level witnessed since '16 last week.
Fig. 1: USD/CNY vs. Differential Between USD/CNY Mid-Point Fixing & BBG Survey Estimate
Source: MNI - Market News/Bloomberg
- As we flagged earlier, the weekend saw policymakers and state-owned media highlight issues which could push back against the to the continued swift appreciation of the CNY, with the authorities keen to maintain the message that the CNY will operate in a 2-way environment around "basically stable" levels.
- If USD/CNY does continue its move lower then technical support at the following levels may come into play:
- CNY6.3554 - Low May 17 2018
- CNY6.3292 - Low May 11 2018 & key support
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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.