Free Trial

USD/CNH At New April Highs

CHINA
  • Greenback strength through the US equity open very notable against the CNH, with USD/CNH rising through the April highs to print the best levels since March 28th. USD/CNH now higher by just over 0.75% since the March 31st lows and comes ahead of the extended holiday weekend for most Western markets.
  • Worth noting, however, Chinese markets will remain open for the duration - including Friday - where markets are eyeing the possibility of a further RRR cut from the PBoC as well as easing via the 1yr lending facility rate.
  • The PBoC last announced a 50bps RRR cut (to 11.50%) on December 6th, with the prior cut announced in July. - The speculation follows a release from the Chinese authorities on Wednesday, who stated “China will use monetary policy tools including a RRR cut at an appropriate time, and will step up financial support to the real economy"
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

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.