Free Trial

The yuan continues to mount a recovery...>

CHINA YUAN: The yuan continues to mount a recovery against the dollar with
USDCNH trading at 6.6336 currently, down 1.5% from its intraday high on July 3. 
- The yuan's recovery is being supported by broad-based dollar weakness, which
has meant the yuan continues to underperform most major EM and DM currencies,
with the yuan's trade-weighted index edging lower. The greenback's broad-based
weakness is positive for further S-T yuan gains.
- EURCNH is clinging to 7.80 after having taken out its 200DMA last week. The
pair is threatening to break out of downtrend resistance from the August 2017
- CNHJPY is showing some ST reversal potential in line with most other yen
crosses, with a break above 16.70 (from 16.65 currently) likely to provide the
impetus for more sustained CNH gains.
- CNHKRW trades at 167.44, at the lower end of its 6-month range. The 30-day
rolling correlation between USDKRW and USDCNH has risen to as high as 0.9 as the
yuan's influence on regional FX increases, and so we would not expect any major
moves in the CNHKRW cross. 

To read the full story



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.