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
Bullish
Oil - US Crude
Bullish
Wall Street
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
Gold
Bullish
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • 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/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • 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/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
Yuan Eyes on New Yuan Loans, Trade Prints

Yuan Eyes on New Yuan Loans, Trade Prints

2017-07-08 01:34:00
Renee Mu, Currency Analyst
Share:
Yuan Eyes on New Yuan Loans, Trade Prints

Fundamental Forecast for CNH: Neutral

The Chinese Yuan retraced against the U.S. Dollar this week, but remained within an upward channel (downward for the USD/CNH). Both the July FOMC minutes and the Non-Farm Payrolls report added mixed moves to Dollar pairs, including the USD/CNH; neither was able to generate enough momentum to lead a major breakout in the USD/CNH. Looking forward, a heavy economic calendar has the Yuan at risk from home: Consumer Price Index (CPI), New Yuan Loans as well as China’s exports and imports will be top indicators to watch.

Maintaining a good trade relationship with its major counterparts has become one of the challenges that China faces, amid the rise of protectionism seen worldwide. Avoiding conflicts with trade partners, especially the U.S., has been set as a priority by China. The risk was curbed after Trump-Xi’s meeting, but this does not mean it has been fully eased, as the trade deal between China and the U.S. for the coming periods is still unknown. China’s Deputy Minister of Finance Zhu Guangyao told at a US-China business leaders’ dialogue meeting in late June that “the two countries are working on trade practices following the 100-day plan”. On July 6th, he told at a press briefing that promoting free trade will be one of the targets for China at the G20 leaders meeting.

In terms of China’s exports in June, Bloomberg forecasts that the gauge will expand at a faster pace of 9.0% from 8.7% in May. More importantly, investors will want to take a look at the breakdown of the gauge by country, which will provide more clues on China’s trade conditions with its major counterparts. Also, remember China will release the second quarter GDP in two weeks. As a component to the GDP, June trade figures could impact the final estimation of the economic growth in the second quarter.

Gauges that can influence China’s monetary policy are worth to watch as well. China’s Consumer Price Index is expected to rise 1.6% in June from 1.5% in the month prior, though both figures are still distant from the target 3%. With a relatively low inflation, the PBOC is less likely to increase benchmark rates. On the other hand, the regulator is neither likely to cut rates despite of the economic slowdown. In the 2017 China Financial Stability Report released by the PBOC this week, the regulator said that the risk of housing price bubbles remained elevated in some regions and the home loans’ proportion of total new yuan loans was still high. In May, home loans have taken up over 50% of the total loans. Before the ratio drops to a desired level, the PBOC will mostly likely keep monetary policy neutral, which is tighter than last year.

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

DISCLOSURES