We expect a gradual, calibrated convergence in the CNY fixing back towards the spot rate, which closed at around 7.17, DBS FX & Credit Strategist Chang Wei Liang notes.
PBOC raises its USD/CNY fixing marginally
“USD/CNH has seemingly become a beta play to USD/JPY, rising towards 7.20 yesterday but now easing back towards 7.15 in concert with USD/JPY. This underscores the same speculative positioning forces at play in the offshore RMB as the JPY.”
“Meanwhile, the PBOC had raised its USD/CNY fixing marginally to the highest since November on Wednesday. The RMB mood has turned more positive even in the face of LPR and MLF rate cuts, and thus there is a lesser need for the fixing to anchor RMB stability than before.”
“We now expect a gradual, calibrated convergence in the CNY fixing back towards the spot rate, which closed at around 7.17.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds higher ground above 0.6600 amid risk-on mood, hawkish RBA
AUD/USD holds higher ground above above 0.6600 early Friday. Thursday's stronger US macro data eased fears of a slowdown in the world's largest economy and boosted investors' confidence. The Aussie also cheers hawkish RBA Governor Bullock's comments.
USD/JPY extends pullback below 149.00 despite upbeat mood
USD/JPY extends losses below 149.00 early Friday, reversing the overnight rise to a nearly two-week high. The divergent BoJ-Fed policy expectations continue to weigh on the pair, though the risk-on mood could undermine the safe-haven Japanese Yen and help limit the pair's downside.
Gold price consolidates amid geopolitical risks, reduced bets for 50 bps Fed rate cut
Gold price failed to build on the overnight positive move in the wake of the upbeat US data. Easing US recession fears boost investors’ confidence and contribute to capping the metal. Geopolitical risks and bets on an imminent start of the Fed’s rate-cutting cycle lend support.
Ethereum's supply rises by over 210,000 ETH amid Vitalik Buterin's charity donation
Ethereum is down 0.7% on Thursday following three consecutive days of net inflows across ETH ETFs. Meanwhile, ETH's annual inflation rate has continued trending upward amid signs of a potential bullish reversal.
Asia week ahead: Central bank decisions set to dominate
Central bank decisions will dominate the week ahead in Asia, with policy announcements from the Bank of Korea, Bank Indonesia and People’s Bank of China.