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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 has bucked the stronger USD trend seen elsewhere in recent sessions. Today we have spent most of our time near the 7.3100 level (range of 7.3059-7.3168 today). Spot USD/CNY tracks fairly close to 7.3100 as well in recent dealings.
- Earlier the CNY fix was set at 7.1727, the same level as yesterday's outcome. The USD/CNY fixing has been steady in recent sessions, despite higher USD index levels, see the chart below.
- We are approaching Golden Week, which kicks off this Friday and runs through all of next week. The authorities may wish to avoid a sharp move higher in USD/CNY ahead of this period. Local equiity weakness has also been a headwind for CNY in recent sessions.
- Current spot levels are close to the upper end of the +2% daily trading limit relative to the fixing outcome. Today's ceiling is ~7.3162.
- For CNH, another support is coming from tighter funding/liquidity conditions. CNH T/N spiked above +7 earlier. 1 week implied yields sit at 5.68%, close to recent highs, while the 1 month is near 4.77%.
Fig 1: USD/CNY Fixing Level & The BBDXY Index
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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