MNI China Daily Summary: Monday, March 11

MNI: PBOC Conducts CNY10 Bln Via OMO Mon; Liquidity Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.0969 Mon; -3.09% Y/Y

CHINA PBOC INJECTS CNY10 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.0969 MON VS 7.0978

MNI BRIEF: China February CPI Rises To 1-Year High

Week Ahead in Macro

Moderation In CPI-ATE Momentum In Feb

CPI-ATE Lower Than Expected In Feb

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

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GBP Retains Firm Feel Though Off Best Levels vs USD

GBP
MNI (London)
  • Interest at Monday's 0800GMT fix saw rate spike up to $1.3758, just shy of last Wednesday's posted YTD high of $1.3759, before momentum quickly faded and rate fell back on general risk-off USD demand.
  • Rate traded to an eventual low of $1.3656 ahead of the 1600GMT before fresh demand emerged to lift it back to $1.3687.
  • A late NY dip saw rate challenge $1.3657, closing the day at $1.3661.
  • Moves were seen risk/USD led as EUR/GBP consolidated around Gbp0.8825 in post 1600GMT fix trade, this consolidation continuing through Asia and into Europe.
  • Risk reacted to a rise in equities, GBP/USD able to edge to $1.3698 but failure to push back above $1.3700 saw rate drift back to $1.3674 into Europe.
  • Support $1.3660/50, a break of $1.3640 to expose $1.3610/00. Resistance $1.3700, $1.3720/35 protecting against a retest of the $1.3758/59 area then $1.3773(see MNI Techs below).
  • Nationwide House prices at 0700GMT. Keep watch on the 0800GMT fix for possible noise.
  • MNI Techs: GBPUSD maintains a bullish stance. The pair traded to a fresh high of 1.3759 last week, reinforcing bullish conditions and maintaining the current bullish price sequence of higher highs and higher lows. Attention is on 1.3773 next, May 1 2018 high. Near-term firm support has been defined at 1.3520, Jan 18 low. A breach would signal scope for a deeper short-term sell-off and expose 1.3452, Jan 11 low. Initial support lies at 1.3610, Jan 26.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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