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PBoC Fix Boosts Activity In Asia, USD/JPY Breaches Support


Familiar themes centred on a bias towards USD weakness and a stronger than expected PBoC mid-point fixing for the yuan boosted FX volumes in Asia, with USD/CNH & USD/JPY extending their recent forays lower as result.

  • Desks note that interbank volume was somewhere in the region of 60% above the norms in Asia-Pac hours. JPY activity was the standout, with turnover in yen crosses running at over 2x the norm, per the same desks.
  • USD/JPY breached key support in the form of the October 3 low, printing as low as Y147.25, before moving off lows to trade around Y147.50 at typing.
  • JPY finds itself at the top of the G10 FX performance table, while the USD is located at the other end.
  • For CNH, plenty of focus is on positive seasonals ahead of year end, while others speculate that the recent yuan rally provides the PBoC with a wider easing window.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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