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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.
CNH
The USD/CNY fixing came in at 7.1668, against a Bloomberg consensus of 7.2198.
- Still well below market expectations, but only a miss of -530pips in USD/CNY terms, which is below recent fixing error outcomes.
- Importantly, the actual fixing came in at 7.1668, the highest since 2008, see the chart below. Note onshore spot has an upside ceiling of 7.3101 today, versus yesterday's close of 7.2630.
- USD/CNH has spiked following the fixing outcome. The pair got above 7.3600 (high of 7.3686), but we are now back to the 7.3500/50 region.
- The offset early news around easing offshore borrowing requirements, which is designed to encourage capital inflows.
Fig 1: USD/CNY Fixing - Highest Since 2008
Source: MNI - Market News/Bloomberg
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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