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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 looks through the latest BBG sources piece which notes that "China’s largest banks cut rates for the nation’s $453bn corporate USD deposits for the second time in a matter of weeks," removing the spread over SOFR that was offered previously. This follows another cut to rates on USD retail accounts in recent days.
- The bias seen in today's USD/CNY mid-point fixing saw a downtick in the lean towards CNY strength (181 pips vs. the YtD wide of 315 pips seen on Tuesday),.
- The softer than expected Caixin Services PMI print (catch-down with the official equivalent) allowed USD/CNH to firm in pre-London trade.
- That move has extended on the back of the latest European data releases.
- Light net sales of mainland equities via the Hong Kong Connect schemes and weakness in Chinese equity benchmarks will have added some pressure.
- The rate last deals around CNH7.2565, adding 285 pips or so on the day.
- The upper boundary of the uptrend channel that was in play from February through mid- to late June has acted as a rough area of support over the last couple of sessions, while the YtD high (CNH7.2857) presents the initial area of meaningful resistance ahead of CNH7.3000.
Fig. 1: USD/CNH
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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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