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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 found a base around the time of the latest USD/CNY mid-point fixing, with a lack of firm steer vs. sell-side estimates allowing the pair to push higher.
- Ultimately, the market remains comfortable in pushing the envelope re: USD/CNH, even after yesterday’s signs re: policymakers becoming uncomfortable with the velocity of the recent move higher in USD/Yuan (via the mid-point fix and touted state bank sales of USD).
- A quick reminder that our policy team’s latest piece noted that “the PBoC is expected to curb any sharp weakness in the yuan should a stronger-than-expected fixing for the onshore CNY fixing fail to slow its depreciation,” based on discussions with traders and policy advisors.
- USD/CNH has shown as high as CNH7.2473, peaking just ahead of the YtD high (CNH7.2495).
- The pair continues to operate above the uptrend channel that was in play from early February after last week’s breach.
- A break of YtD highs would expose the 28 Nov ’22 high (CNH7.2592).
- The composition of any forthcoming policy stimulus remains key when it comes to the medium-term outlook for the yuan, with expectations building re: support in H223 after Finance Minster Liu Kun’s recent musings.
Fig. 1: USD/CNH
Source: MNI - Market News/Bloomberg
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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