-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI EUROPEAN MARKETS ANALYSIS: China Equities Lower Post CEWC
MNI EUROPEAN OPEN: Sharp Fall In China Bond Yields Continues
On-Shore USDCNY Close Thursday September 14, 2017
By Vicki Schmelzer
NEW YORK (MNI) - On-shore Chinese yuan CFETS close
23:30 local 23:30 local
time close time close 16:30 local time CFETS 16:30 local time CFETS
reference rate close Sept. reference rate close
Sept. 14 Sept. 13 14 Sept. 13
--------------------------------------------------------------------------------
6.5560 6.5415 6.5543 6.5309
USDCNY closed at CNY6.5560, after trading in a CNY6.5440 to CNY6.5610 range
(Bloomberg levels).
On June 27, dollar-yuan topped out at CNY 6.8442, before falling off
sharply as big Chinese banks sold dollars to prop up the yuan, purportedly at
the prompting of the People's Bank of China (PBOC).
Subsequently, USDCNY moved steadily lower, in line with an overall softer
U.S. dollar tone. The pair bottomed Sept. 8 near CNY6.4390, the lowest since
Dec. 11, 2015, when the pair bottomed at CNY6.4390. USDCNY has since moved
higher in line with an improved dollar tone.
USDCNY posted a high of CNY6.9648 Dec. 28, 2016, very close to the
CNY6.9649 high seen Dec. 16, 2016, which was the weakest yuan level since May
21, 2008, when USDCNY topped out at CNY6.9743.
As a reminder, back on Jan. 12, 2016, the PBOC intervened heavily in order
to narrow the spread between the on-shore and off-shore yuan, which had widened
to over +1,400 pips in the first week in January as speculators entered into CNH
shorts on expectations of a higher USDCNY.
The PBOC was forced to intervene as one of the conditions of the yuan's
entry into the IMF's SDR basket was to close the gap.
In subsequent months in 2016, the CNH-CNY spread narrowed markedly,
reflecting overall improved risk appetite. The spread widened in response to the
June 23rd Brexit vote, but later narrowed again.
Beginning in December 2016, the CNH-CNY spread turned negative on several
occasions and the spread subsequently traded at extremely wide negative levels.
Analysts attributed the negative spreads, seen at times in 2017 to tighter
CNH funding conditions and positioning, not improved risk sentiment.
Thursday's CNH-CNY closing spread (at 11:30 p.m. local time) was +20 pips
versus +67 pips Wednesday and compared to the -607 pips seen May 31. The August
9 spread of +223 pips was the most positive spread since Dec. 12, 2016, when the
spread stood at +267 pips.
The Feb. 3, 2017 spread was -719 pips, which was the widest negative spread
since the -891 pip spread seen Jan. 5. On Dec. 19, 2016, the spread was -276
pips, which was the most negative spread of 2016.
On Nov. 23 and Nov. 25, 2016, the CNH-CNY spread widened to +287 pips. This
was the widest positive spread since Brexit in late June 2016, when on June 27,
the closing CNH-CNY spread of +396 pips was the widest, i.e. most risk averse,
since Feb. 3, 2016 when the spread was also +396 pips.
On Jan. 2, 2017, the off-shore yuan fell to a new life-time low versus the
dollar around CNH6.9895. Since then, overall the CNH has strengthened in line
with the CNY.
Dollar-yuan (offshore) was trading near CNH6.5484 Thursday, after holding
in a CNH6.5397 to CNH6.5705 range.
The USDCNH low of CNH6.4436, seen Sept. 8, was the lowest level since Dec.
7, 2015, when the pair bottomed at CNH6.4425.
Nearly four months ago, when U.S. Treasury yields and the dollar were
flying higher, USDCNH posted a high near CNH6.9177 May 9, the highest level
since March 9, when the pair saw a high near CNH6.9319.
Earlier, the People's Bank of China set the yuan central parity fixing
versus the U.S. dollar at CNY6.5465 versus CNY6.5382 Wednesday.
The Sept. 11 fixing of CNY6.4997 was the highest yuan fixing level since
May 12, 2016, when the parity rate was set at CNY6.4959. At the time, the PBOC
had set the fixing stronger for 11 straight trading days.
These levels compared to the CNY6.9526 fixing, seen Jan. 4, 2017, which was
the weakest yuan fixing level since May 21, 2008.
--MNI New York Bureau; tel: +1 212-669-6438; email: vicki.schmelzer@marketnews.com
[TOPICS: MTABLE,M$A$$$,M$Q$$$,M$$FX$,MN$FX$]
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.