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Free AccessUSDCNH has stuck within a tight range....>
CHINA YUAN: USDCNH has stuck within a tight range since falling to new cycle
lows in Asian trading yesterday. The pair sits at 6.7911 with bears looking to
extend the downtrend below yesterday's low of 6.7800. The 1-month risk reversal
has plunged into negative territory, hitting its lowest level since 2011
yesterday
- The yuan continues to outperform non-dollar FX, with CNHKRW remaining clear of
the 164 level following yesterday's break.
- EURCNH dropped back down to range lows yesterday but the 200-dma held firm yet
again. A close below this level, which comes in at 7.8073, would suggest a major
topping pattern in the pair.
- Rate markets are not confirming the bullish move seen in the yuan which
suggests caution is warranted. A clean break above 2.6% in 2-year swaps would
help the yuan's fundamental backdrop.
To read the full story
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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.