Free Trial

Monday saw TD Securities go long a.......>

CHINA YUAN
CHINA YUAN: Monday saw TD Securities go long a 12-Month USD/CNH forward, at
CNH7.2477 (CNH7.1490 spot reference). Spot take profit and stop-loss references
are CNH7.5060 and CNH6.9700 respectively. Indicative 12-month spot forward take
profit and stop loss levels are CNH7.6100 and CNH7.0665 respectively.
- They "detect a shift in policy maker tone regarding the USD/CNY fixing. The
proximity to recent political events suggests to us that Chinese policy makers
will no longer subjugate renminbi policy to maintaining goodwill in U.S.-China
trade relations. We instead see policy makers prioritizing FX adjustment to the
Covid-19 global trade shock, and assistance in easing monetary conditions. We
however do not think that there will be an intentional outright politicization
of the renminbi, which we would characterize by a substantial (10%-plus)
idiosyncratic depreciation against the USD."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.