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.
Not as low a USD/CNY mid-point fixing as expected from the PBoC (CNY6.3014). The mid-point fixed above the CNY6.3000 mark even with broader sell side expectations looking for a sub-CNY6.3000 fix (BBG median of CNY6.2955). This comes after a RTRS sources report noted that state-owned Chinese banks were buying USD vs. CNY on Monday, in what seemed to be an attempt to stop a break below the CNY6.3100 level (USD/CNY closed Monday trade at CNY6.3092, troughing at CNY6.3065, while USD/CNH traded as low as CNH6.3072 on Monday). For reference the deviation between the USD/CNY mid-point fixing wasn't large by historical standards, although it seems like the authorities are leaning against the wind (at least at the margin) when it comes to yuan strength.
Fig. 1: Differential Between USD/CNY Mid-Point Fixing & BBG Median Estimate (Pips)
Source: MNI - Market News/Bloomberg
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.