Free Trial

USDCNH trades at 6.8443 ahead of the.....>

CHINA YUAN
CHINA YUAN: USDCNH trades at 6.8443 ahead of the PBOC fix, with failure to break
back above 6.8500 yesterday giving bears the slight edge in the near term.
- The strong rally in Chinese stocks yesterday is also positive for the yuan, as
is the ongoing strength in EURUSD. The rally in stocks has seen the 21-day
rolling correlation between the yuan and the CSI300 rise back to 0.47.
- With stocks and rates recovering this is a solid backdrop for a decline in
USDCNH. However, the relentless rise in Us 2-year yields is keeping China-US
yield spreads to a minimum, acting as a fundamental drag on the yuan. 

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.