Free Trial

USDCNH trades at 6.9234 and remains in its....>

CHINA
CHINA: USDCNH trades at 6.9234 and remains in its tight range established
yesterday following Friday's gains. Yield spreads between the US and China
continue to head in the direction of the US, which should provide fundamental
support for the dollar. 
- The 2-year interest rate swap spread is now 16.2bps, testing new cycle lows,
and given the recent drop in US breakeven inflation expectations resulting from
equity weakness, US real yields are testing fresh cycle highs.
- A recovery in Chinese stocks or a further decline in US stocks will likely be
needed to prevent USDCNH breaking to the upside given recent trends.

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.