MNI BRIEF: BOC Cutting To 3% Next Year, Ex Governor Dodge Says

MNI BRIEF: Output Gap Shut, Wage Growth Too Fast - BOE Greene

BRIEF: EU-Mercosur Deal In Final Negotiations - EC

MNI China Daily Summary: Thursday, Dec 5

MNI BRIEF: China Construction Output Slows In November

MNI: PBOC Net Drains CNY153 Bln via OMO Thursday

US EIA:NAT GAS STORAGE -30 BCF TO 3,937 BCF NOV 29 WK

MNI: CANADIAN OCT TRADE BALANCE CAD -0.9 BILLION

MNI: US OCT TRADE GAP -$73.8B VS SEP -$83.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD/CNH Uptrend Persists, But The Authorities Appear Prepared To Ride Out USD Strength

MARKET INSIGHT
  • From earlier YTD lows, both USD/CNY & USD/CNH are nearly 7% higher. The yuan is the second weakest performer in Asia YTD (MYR is the worst). The yuan has come unstuck as the re-opening trade has lost momentum, which has weighed on China asset sentiment more broadly. US-China tensions haven’t helped either.
  • A continued elevated US yield backdrop is the other yuan headwind, although China is not alone on this front. Uncertainty remains around the state of the US rate cycle, we get a fresh update on Fed thinking and May CPI this week.
  • Despite the recent yuan weakness, the authorities appeal fairly relaxed about the current FX backdrop. The CNY fixing has shown little pushback against renewed depreciation pressures. This may change if we see depreciation pressures quicken or we revisit CNY lows from Q4 last year.
  • This week we get updates on May China activity data, as well as new lending/credit. There is also speculation we could see a MLF cut on Thursday.
  • All in all, it may take a more definitive peak in US rates/coupled with a better China growth outlook to bring a meaningful correction in USD/CNH.
  • See here for more details.
EM BulletFixed Income BulletsHomepageBulletMarketsEmerging Market NewsForeign Exchange Bullets

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.