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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.
CNH
USD/CNH remains underpinned, moving to a fresh cycle high as Chinese participants return from the elongated weekend and Europe wakes up to a weaker session for Chinese equities (CSI 300 -1.4% at the close). Northbound net flows via the Hong Kong-China Stock Connect schemes summed to modest net inflows (~CNY2.1bn).
- USD/CNH shows above CNH7.2300 for the first time this year, with bulls focused on the 28 Nov ’22 high (CNH7.2592) after last week’s break and close above the well-defined uptrend channel resistance.
- The PBoC provided greater lean against CNY weakness via the daily mid-point fixing, although the 77-pip gap between the sell-side BBG survey median and the USD/CNY mid-point fixing is not large by historical standards.
- Softer than pre-COVID level spending surrounding the Dragon Boat Festival holiday provided the latest batch of negative Chinese economic news.
- Participants eye China’s official PMI data, due Friday, with continued focus on the need for deeper stimulus.
- S&P became the latest notable name to slash its Chinese GDP forecasts, while the China Securities Journal flagged the need (and likelihood) for further fiscal support, citing analysts. Meanwhile, the Securities News outlined a similar train of thought, while also pointing to the likelihood of further monetary easing in H223, once again citing analysts.
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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