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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.
CHINA
- Rate cuts and weaker-than-expected economic data have been weighing on the Chinese yuan recently, with USDCNY constantly testing new highs after finding support at its 50DMA last week.
- The pair is approaching its key ST resistance at 6.8125, which was the high reached in mid-May following the sharp Yuan depreciation in April.
- We recently saw that while equities have been recovering sharply in the US and the Euro area, with the SP500 and Eurostoxx50 up 17% and 12% respectively in the past month, China stocks have remained subdued amid falling growth expectations.
- The ‘great reopening’ narrative quickly faded away after Covid cases started to rise again, therefore limiting the upside gain on domestic risky assets and on the CNY.
- A break above the 6.8125 level would open the door for a move up to 6.8450, which corresponds to the 61.8% Fibo retracement of the 6.3070 – 7.1780 range.
Source: Bloomberg
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.
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