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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
USD/CNH remains within recent ranges, underperforming yesterday's USD sell-off, see the chart below. The CNY NEER slipped yesterday, down around 0.30%, but remains just above recent lows (per the J.P. Morgan index).
- USD/CNH did test sub 7.1900 on a number of occasions, but couldn't get much beyond these levels. We now sit back close to 7.2100. Note there will be no release of Q3 GDP or the monthly September indicators. The releases have likely been delayed due to the Party Congress held this week.
- Onshore spot couldn't sustain levels above 7.2000, following wire reports yesterday of state bank selling USDs in the onshore market yesterday.
- The spot closing used for today's fixing estimate was still elevated though at 7.2050.
- Recent fixing outcomes have been flat lining around the 7.1100 level. Some help today should come from the weaker USD trend overnight.
Fig 1: CNH Underperforms Weaker USD
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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