News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/ImXreWFFFY
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/SbVPuUmpTU
  • 🇮🇹 Consumer Confidence (SEP) Actual: 103.4 Expected: 100.8 Previous: 101.0 https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇮🇹 Business Confidence (SEP) Actual: 92.1 Expected: 87.5 Previous: 87.1 https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇮🇹 Consumer Confidence (SEP) Actual: 103.4 Expected: 100.8 Previous: 100.8 https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇮🇹 Business Confidence (SEP) Actual: 92.1 Expected: 87.5 Previous: 86.1 https://www.dailyfx.com/economic-calendar#2020-09-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.91%, while traders in EUR/GBP are at opposite extremes with 67.79%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vQ8iSnCFKO
  • Heads Up:🇮🇹 Consumer Confidence (SEP) due at 08:00 GMT (15min) Expected: 100.8 Previous: 100.8 https://www.dailyfx.com/economic-calendar#2020-09-25
  • Heads Up:🇮🇹 Business Confidence (SEP) due at 08:00 GMT (15min) Expected: 87.5 Previous: 86.1 https://www.dailyfx.com/economic-calendar#2020-09-25
  • Heads Up:🇪🇺 European Council Special Meeting due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-25
PBOC, Fed Policies Remain Key Drivers to Yuan

PBOC, Fed Policies Remain Key Drivers to Yuan

2017-03-11 02:58:00
Renee Mu, Currency Analyst
Share:
PBOC, Fed Policies Remain Key Drivers to Yuan

Fundamental Forecast for the Yuan: Neutral

The USD/CNH fell to a major support zone around 6.8845 on Friday after the non-farm payroll report failed to inspire a bullish-run in the Dollar. Earlier in the Asian session, PBOC’s officials’ talks on exchange rates added strength to the Yuan as well; the USD/CNH pulled back from a key resistance level of 6.9088. Next week, policies from two central banks, the Fed and the PBOC, will continue to lead Dollar/Yuan moves. In terms of event risks, the growth print for China’s fixed assets may give out clues on the economic outlook.

The U.S. Federal Reserve will release the March rate decision on Wednesday with a nearly 100% odds of a rate hike. As this is widely expected and likely already priced-in, the main focus will be on Fed’s plan for future rate hikes. Also, PBOC’s governors comments indicate that Chinese regulators have been closely watching Fed’s policy and are less likely to go against major trends led by Fed rate hikes.

At the same time, Yuan’s borrowing costs saw increases in the offshore market, adding strength to the Yuan rate. As of this Friday, the funding costs for the Yuan, from overnight to 1-year term, have all remained elevated. PBOC’s governors’ remarks send out two signals: the regulator disagrees with excessive short speculation in the Yuan and it will use foreign reserves to stabilize the exchange rate when necessary. For a couple of instances that HIBOR rose significantly in the past, market had suspected that it was the Chinese regulator to squeeze out the Yuan short. As a result, traders will want to be cautious when HIBOR increases and keep a close eye on it.

Next week, China will release the report for growth in fixed assets. This gauge may not have much direct impact to the Yuan rate but it is a key indicator to evaluate China’s economy. As of the end of 2016, the expansion in fixed assets has dropped to 8.1%, the lowest level in 15 years; private investment in fixed assets, accounting for 60% of total investment, has improved slightly to 3.2% in December from a record-low of 2.1% in August, but this is still significantly lower than levels in previous years. As a major contributor to the GDP, growth in fixed assets may determine whether the country can achieve the 6.5% economic growth target in 2017.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES