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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
The USD/CNY fix printed at 6.7462, versus a market estimate of 6.7449.
- Today's fix is a +13pip surprise in USD/CNY terms, following yesterday's outcome of a +11pip outcome. The general trend remains towards positive surprises, with 9 out of the last 10 sessions delivering positive surprises in USD/CNY terms.
- The 5-day rolling sum of the error term has pushed up to +54pips, versus +31 pips yesterday. The is fresh highs for the metric going back to late April of this year, see the chart below.
- CNH hasn't reacted a great to deal to the fix. USD/CNH is back sub 6.7900, last tracking around 6.7850. Still, the authorities don't appear to be leaning against depreciation pressures via the fixing mechanism, as the pair threatens to test above 6.8000. The last time USD/CNH was pressing above these levels, the fixing bias was trying to curb such pressures, as the chart below highlights.
Fig 1: USD/CNH & CNY Fixing Error Trend
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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