Free Trial

PBoC flex their muscles, fixing USD/CNY.......>

FOREX
FOREX: PBoC flex their muscles, fixing USD/CNY sub-6.90
-China's CNY is outperforming G10 FX space, with the offshore USD/CNH rate
slipping back toward last week's lower levels as the PBoC pressed against those
betting for a weaker CNY by setting the daily fix well toward the lower end of
expectations (CNY stronger). The counter-cyclical move is one of many tools
available to the central bank at this stage to prevent any disorderly weakness
in their currency and they cemented the move by announcing an offshore bill sale
in late June, which should also work in favour of the CNY.
-GBP also trades well as jobs number exceeded forecast. Earnings growth was a
particular highlight, with the headline beat also backed up by positive
revisions. GBP/USD improved above $1.27 in response, but still has a way to go
before challenging the week's highs at $1.2747. Positive sentiment has also
filtered through to global equity markets, with US futures indicating a higher
open on Wall Street, helping prop up USD/JPY into the crossover.
-US PPI for May is the data highlight Tuesday with a speech scheduled from new
ECB governing council member, Kazimir of the Slovakian central bank.

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.