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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.
CHINA
- Despite the rise in inflationary pressures fueled by the Russia/Ukraine conflict, the BoJ has shown little inclination toward raising rates while the rest of the developed central banks are preparing for a tightening cycle.
- BoJ’s dovish comments have led to a sharp JPY depreciation this month, with USDJPY surging to its highest level since December 2015.
- Momentum on CNYJPY has also remained firm (despite China officials announcing clear easing signals), with the pair breaking above the 19 level this week (also trading at highest level since Dec 2015).
- Interestingly, the Japanese Yen, which has historically been known as 'traditional safe haven' that appreciate sharply when volatility surges, has been performing poorly since the start of the conflict on February 24.
- On the other hand, CNY has also been benefitting from ‘safe-haven’ flows from global investors.
- CNYJPY is up over 30% since its March 2020 low; next key resistance to watch on the topside stands at 19.4260.
Source: Bloomberg/MNI
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.
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