MNI: PBOC Net Injects CNY25.7 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1897 Thurs; -2.25% Y/Y

MNI: PBOC Net Drains CNY195.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1868 Weds; -2.18% Y/Y

MNI: JAPAN NOV SERVICES PPI +3.0% Y/Y; OCT UNREV +2.9%

MNI China Daily Summary: Tuesday, December 24

MNI: US REDBOOK: DEC STORE SALES +5.0% V YR AGO MO

MNI: US DEC PHILADELPHIA FED NONMFG INDEX -6

EZ/UK Bond Supply Calendar: BOE APF Sales Due 6 January

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

EM FX: Emerging Market Currencies Mixed Amid Lack of Additional China Stimulus

EM FX
BulletEM BulletEmerging Market News

Emerging market currencies are mixed at the start of Tuesday trade, despite a mildly softer course for the USD this morning. Comments from Fed’s Kugler's leant dovish - flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market. Meanwhile, China said it’s confident in reaching its economic targets this year and promised to further support growth, but fell short of announcing any major additional stimulus measures.

  • CNH performance closely tracked the performance of onshore equities across Asia-Pac trade, with initial equity weakness helping push USD/CNH higher, and prompting Hong Kong-listed equities to sharply retrace last week’s gains. Since then, USD/CNH has faded from intra session highs, last near 7.05, as equity sentiment stabilised. The CSI 300 ended the session up 6%.
  • The accompanying slump in metals has prompted notable underperformance for the South African rand - with iron ore futures in Singapore down around 5% and copper trading at a multi-week low.
  • On the other hand, CE3 currencies have shown resilience and have partially moderated some of yesterday’s losses, with regional focus shifting to CPI data out of Hungary and Czechia later in the week.
  • USDMXN is trading around 0.2% higher, though price is well-contained within Monday’s ranges. Yesterday evening, Bloomberg reported that Mexico’s Supreme Court has agreed to review the judicial overhaul passed by Congress last month in what is the last resort to appeal the controversial decision.
234 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.

Emerging market currencies are mixed at the start of Tuesday trade, despite a mildly softer course for the USD this morning. Comments from Fed’s Kugler's leant dovish - flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market. Meanwhile, China said it’s confident in reaching its economic targets this year and promised to further support growth, but fell short of announcing any major additional stimulus measures.

  • CNH performance closely tracked the performance of onshore equities across Asia-Pac trade, with initial equity weakness helping push USD/CNH higher, and prompting Hong Kong-listed equities to sharply retrace last week’s gains. Since then, USD/CNH has faded from intra session highs, last near 7.05, as equity sentiment stabilised. The CSI 300 ended the session up 6%.
  • The accompanying slump in metals has prompted notable underperformance for the South African rand - with iron ore futures in Singapore down around 5% and copper trading at a multi-week low.
  • On the other hand, CE3 currencies have shown resilience and have partially moderated some of yesterday’s losses, with regional focus shifting to CPI data out of Hungary and Czechia later in the week.
  • USDMXN is trading around 0.2% higher, though price is well-contained within Monday’s ranges. Yesterday evening, Bloomberg reported that Mexico’s Supreme Court has agreed to review the judicial overhaul passed by Congress last month in what is the last resort to appeal the controversial decision.