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Free AccessStronger-than-expected CNY fix.....>
EMERGING MARKETS: Stronger-than-expected CNY fix only goes so far
-A poor start to the session for risk was countered slightly by the
stronger-than-expected CNY fix (7.0211), but the support ebbed away as Europe
came to market. USD/CNH was bid up to the day's highs of 7.1113 shortly after
the Asia close, keeping bull's focus on the cycle highs at 7.14.
-The selling pressure on the Chinese currency fed through to broader risk
sentiment, triggering pressure on TRY, ZAR, KRW and TWD among others. The
sell-off has been somewhat contained so far, although cracks are beginning to
show in USD/TRY, which has rallied back above the 200-dma after an extended drop
over the past two weeks. Similarly in USD/ZAR, new cycle highs have been printed
this morning at 15.4367.
-Brazilian economic activity data and Russian GDP numbers are the calendar
highlights, although the fragile risk sentiment is likely to dominate Monday's
US trading hours.
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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.