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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.
CNH
A firm rejection of resistance from Oct 12, 2016 high resulted in a pullback over the last few days, preventing spot CNH/THB from testing the nearby bull channel top for now. The latest leg lower coincides with the RSI's move back below the 70 threshold, which constitutes a bearish signal.
- The Thai baht has been a clear outperformer in Asia EM FX space this week, as easing Omicron worry has reignited hopes for a swifter recovery of the tourism sector. The improving domestic Covid-19 situation has provided further support to THB, as daily cases fell to multi-month lows.
- Over in China, much focus has fallen on a shift towards more supportive policy stance. Not only did the PBOC deliver a 50bp cut to the RRR, but recent comments from senior officials fuelled expectations of more policy easing going forward.
- With CNH/THB last trading -119 pips at THB5.2734, bears look for a clean break below channel floor at THB5.1348. Meanwhile, bulls need a break above Dec 3/Oct 12, 2016 highs of THB5.3326/87 before setting their sights on bull channel top at THB5.3794.
Fig. 1: CNH/THB
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.
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