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Free AccessUSD/HKD Consolidates Just Below 7.8400
USD/HKD spot has consolidated somewhat, with spot finding some resistance to a break above 7.8400 in the near term. The pair was last around 7.8370, with a modest 7.8364/7.8386 range so far today. Recent highs rest around the 7.8395 level.
- US-HK yield differentials still remain skewed in favor of the USD, although market participants may not see the same risk/reward given spot USD/HKD is getting closer to the top end of the peg band.
- Broader USD sentiment has also stabilized in recent sessions, with the BBDXY tracking sideways around a rough 1240 mid-point.
- In the outright forward space, the 12 month remains below 7.7800, the 6 month near 7.8000, both pairs sit slightly below recent highs.
- The local data calendar remains quiet until tomorrow when July trade figures are out. The market expects export growth at -8.8% y/y (prior -11.4%).
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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.