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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
- The divergence persists between the CNYJPY exchange rate and Chinese equities as the deceleration in the domestic economy, the contraction in liquidity and the government's crackdown on a range of industries have been weighing on risky assets.
- CNYJPY has historically shown strong co-movement with equities (i.e. Hang Seng index, see chart).
- In addition, periods of Yen weakness have generally been associated with trending stock market (also known as 'risk on' environment).
- The JPY has been the weakest performing currency against the CNY among the G10 world, down 12.3% since the start of the year.
- CNY has remained strong this year as the significant divergence between DM central banks and PBoC (PBoC assets are almost unchanged since the pandemic) has been supporting the yuan.
- With growth expectations expected to be revised to the downside amid rising Covid uncertainty, Chinese equities could reach new lows in the near term.
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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