USDCNH has edged to the bottom of its....>

CHINA YUAN: USDCNH has edged to the bottom of its tight daily range with the

pair failing so far to break above its 200-dma at 6.7577 amid very little news

flow at the start of the week long break. 

- EURCNH saw a big move on Friday back above neckline support turned resistance

going back to August, improving the near term outlook for the cross.

- The Caixin Services PMI was released over the weekend, printing at 53.6 vs

53.4 exp, although this still represented a slowing from December's reading of

53.9. This has seen the spread between the Services and Manufacturing readings

rise to fresh highs. The relatively strong services figure has allowed the

composite figure to remain above 50.0 for now, coming in at 50.9. From a

composite perspective a strong rise in new business was recorded, as the survey

revealed the fastest increase in new work seen in 7 months, with overall new

work from abroad increasing for the first month in 10. 

- On the trade war front it is worth noting that a weekend report from the SCMP

suggested that President Trump and President Xi are considering a meeting on

February 27 and 28 in Da Nang, Vietnam.