Free Trial

USDCNH is testing its daily highs at.....>

CHINA YUAN
CHINA YUAN: USDCNH is testing its daily highs at 6.8120 but continues to trade
in a tight range, consolidating following the sharp drop on Friday. The 21-dma
at 6.8494 is likely to act as resistance as the short-term outlook remains
slightly bearish.
- The yuan's rally is being supported by the continued broad-based weakness in
the dollar vs developed market FX, but hindered by the dollar's ongoing strength
against EM FX. 
- The 30-day rolling correlation between CNH and the JPMorgan EM FX basket is at
just 0.54, compared to 0.86 for CNH and the DXY. For now, the yuan is trading
more like a DM currency, which, together with the recent drop in implied
volatility, bodes well for further ST gains. 

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.