MNI BRIEF: BOC Sees Milder Reaction To Tariffs Than To Covid

BOC SAYS ITS RESPONSE TO A TARIFF WAR WON'T BE LIKE IN COVID

BOC: TRADE THREATS ALREADY BLURRING DOMESTIC ECONOMIC REBOUND

MNI INTERVIEW2 -Banxico Optimistic On Non-Core Inflation-Heath

MNI China Daily Summary: Friday, February 21

MNI BOK WATCH: Board To Ease Base Rate To 2.75%

MNI: BAKER HUGHES US RIG COUNT 592; OIL RIGS 488; GAS RIGS 99

BAKER HUGHES CANADA RIG COUNT 244; OIL RIGS 174; GAS RIGS 70

MNI: US NAR: JAN EXISTING HOME SALES 4.08M SAAR

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

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

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CNH: USD/CNH Holding Above 7.3100, Focus On CNY fixing

CNH
EM BulletAPACChinaEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

USD/CNH tracks near 7.3135 in early Tuesday dealings. Dips sub 7.3100 were supported through Monday trade. CNH lost a little ground in aggregate for Monday's session, in line with a tick higher in USD indices. Spot USD/CNY ended up at 7.3050 for Monday's session, with onshore spot losing ground in each session since markets returned from the LNY break. The CNY CFETS index tracker rose 0.18% to 100.73 (per BBG). 

  • The bias for market fixing estimates is likely to be skewed higher again today. The 4:30pm onshore spot close was 7.3077, and we saw generally positive USD gains against most of the majors, although nothing significant in percentage terms.
  • Market focus is on this for a sign of greater comfort around yuan depreciation pressures. Yesterday's upside cap on USD/CNY was 7.3141. Expectations aren't for a sharp devaluation though. 1 month implied vol is back around 5%, close to
  • For USD/CNH techs, we are holding above all key EMAs, the 20-day back close to 7.3000. Feb 4 highs at 7.3365 could be an upside focus.
  • Trump tariff headlines remain in focus. Earlier Trump signed executive orders on steel and aluminium tariffs in the oval office. These will come into affect on March 4. Tariffs on autos and chips and other areas, including pharmaceuticals will be coming next Trump stated. Reciprocal tariff details will also be released in the next few days.
  • On the data front, we are waiting for new loans/aggregate finance figures for Jan, which are expected to show an early year seasonal bounce. 
254 words

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.

USD/CNH tracks near 7.3135 in early Tuesday dealings. Dips sub 7.3100 were supported through Monday trade. CNH lost a little ground in aggregate for Monday's session, in line with a tick higher in USD indices. Spot USD/CNY ended up at 7.3050 for Monday's session, with onshore spot losing ground in each session since markets returned from the LNY break. The CNY CFETS index tracker rose 0.18% to 100.73 (per BBG). 

  • The bias for market fixing estimates is likely to be skewed higher again today. The 4:30pm onshore spot close was 7.3077, and we saw generally positive USD gains against most of the majors, although nothing significant in percentage terms.
  • Market focus is on this for a sign of greater comfort around yuan depreciation pressures. Yesterday's upside cap on USD/CNY was 7.3141. Expectations aren't for a sharp devaluation though. 1 month implied vol is back around 5%, close to
  • For USD/CNH techs, we are holding above all key EMAs, the 20-day back close to 7.3000. Feb 4 highs at 7.3365 could be an upside focus.
  • Trump tariff headlines remain in focus. Earlier Trump signed executive orders on steel and aluminium tariffs in the oval office. These will come into affect on March 4. Tariffs on autos and chips and other areas, including pharmaceuticals will be coming next Trump stated. Reciprocal tariff details will also be released in the next few days.
  • On the data front, we are waiting for new loans/aggregate finance figures for Jan, which are expected to show an early year seasonal bounce.