MNI BRIEF: Commodities An Obstacle To Rate Cuts: World Bank

MNI BRIEF: Canada Firms' Price Plans Jump In April- CFIB

MNI BRIEF: Commodities Likely To Hurt Disinflation- World Bank

MNI CBRT WATCH: Turkey CenBank Holds After "Significant" Hike

MNI China Daily Summary: Thursday, April 25

MNI BRIEF: China Opposes Accusations Of Overcapacity - MofCom

US EIA:NAT GAS STORAGE +92 BCF TO 2,425 BCF APR 19 WK

MNI: US NAR MAR PENDING HOME SALES INDEX 78.2 V 75.6 IN FEB

Feb Average Weekly Earnings +4.5% While Payroll Employment -0.1%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

PBOC Take First Action Against Currency Strength

FOREX
  • China FX had another solid session, with CNY and CNH both creeping higher against the greenback to hit new cycle highs. This price action stalled and partially reversed, however, as the PBoC acted to raise the FX reserve requirement ratio for financial institutions to 7% from 5%, effective in two weeks.
  • The policy switch may prompt institutions to further diversify out of CNH & CNY and into the likes of USD and EUR, thereby arresting some of the recent currency strength. USD/CNH bounced to trade back above 6.37 on the news.
  • Across G10 FX, GBP and CHF traded lower while AUD and NZD printed furtive gains. Liquidity, headlines and price action remained muted throughout due to the US and UK bank holidays.
  • Tuesday marks the beginning of June, with focus turning to global final PMI revisions from a number of different developed markets, prelim Eurozone inflation, Canadian GDP and the ISM Manufacturing report for May.
  • The RBA rate decision is also due, with policy expected broadly unchanged. Fed's Quarles, Bailey and Brainard are all due to speak.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities

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.