Free Trial

HKD Flat On The Session, NDF's Indicate Potential Upside

HKD

The Hong Kong dollar is one of the better performers in Asia simply by virtue of avoiding negative territory. USD/HKD last flat at 7.7532, the pair rose as high as 7.7540 yesterday on broad US dollar strength.

  • There hasn't been much in terms of Covid developments in the headlines, but the mood is still negative in the region. Several Hong Kong ministers are heading to Shenzen to discuss ways to contain the next wave, latest reports Hong Kong are expecting up to 60 new cases today.
  • There is still talk of a mandatory, city wide screening programme but Chief Executive Carrie Lam has repeatedly rejected this. Hong Kong will extend the suspension of in person classes to Jan 10.
  • We are still skirting the lower band in USD/HKD, but 1-month forward points in HKD have extended below zero which could indicate the pair will move higher within the band in 2021.

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.