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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
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
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/KdpSjQSJ8F
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/INdFtsrTTF
  • What is the top market moving theme for the coming week? I disagree with the majority. '$EURUSD, $GBPUSD and $AUDUSD Top Volatility Candidates With #Fed, #Election, #TradeWar' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/07/EURUSD-GBPUSD-and-AUDUSD-Top-Volatility-Candidates-On-Fed-Election-Trade-War.html?CHID=9&QPID=917719 https://t.co/Q1dbZVN5Us
  • The Australian Dollar was focused on its home country in the past week, but that is likely to change sharply in the days ahead with major global risk events coming up. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/yZz3hCyVMx https://t.co/1xw1JHwd7l
  • The #Euro broke chart resistance, threatening to challenge the bounds of its longer -term downtrend against the $USD. Bulls may find it premature to celebrate however. Get your market update from @IlyaSpivak here: https://t.co/VfR13llYbW https://t.co/LiWTvIygxc
  • The $USD appears to be stalling against the Singapore Dollar, Malaysian Ringgit, Indonesian Rupiah and Philippine Peso, but technical analysis may still favor USD strength. Get your market update from @ddubrovskyFX here:https://t.co/AZp98MoXKo https://t.co/jgZMUFVGJB
  • The Indian Rupee soared after the Reserve Bank of India surprised with a rate hold. $USDINR may climb as support reinstates the uptrend ahead of Indian CPI and global trade tensions. Get your market update from @ddubrovskyFX here:https://t.co/QEOabsDfMn https://t.co/rqn8Zjrvkv
  • #Gold closed lower after paring early-week gains post-NFP on Friday. But will price finally break support? These are levels that matter on the $XAUUSD weekly chart. Get your $gld technical analysis from @MBForex here: https://t.co/RILBGhLAQZ https://t.co/q5znMUlEQA
  • German Bund Yields Update: 2-Year: -0.639% 3-Year: -0.651% 5-Year: -0.548% 7-Year: -0.480% 10-Year: -0.290% 30-Year: 0.228%
  • The $AUD erased half of November’s down move in a mere two days but the dominant trend bias continues to favor weakness ahead. Get your market update from @IlyaSpivak here:https://t.co/ShYksfNXyS https://t.co/OVhyNgLRn5
Yuan Climbs Higher after Onshore Markets Reopen

Yuan Climbs Higher after Onshore Markets Reopen

2016-02-19 01:26:00
Renee Mu, Currency Analyst
Share:
Yuan Climbs Higher after Onshore Markets ReopenYuan Climbs Higher after Onshore Markets Reopen

Fundamental Forecast for the Yuan:Neutral

In the past week, the onshore Yuan rate (CNY) had its biggest weekly gain against the US dollar since March 23, 2015. The offshore Yuan (CNH), on the other hand, closed at a slightly more bearish positon. The discrepancy between two markets comes from accumulated appreciation in the offshore market during the one-week onshore holiday for the Lunar New Year. In fact, if we take a look at the Yuan rates at the two markets on a daily basis, they have moved along similar trends over the past week. Looking forward, Yuan rates will mostly drive by domestic policies as well as event risks from major counterparties.

The daily reference rate set by China’s Central Bank has a huge impact on Yuan rates in both onshore and offshore markets due to the Yuan’s current formation regime. In the past week, multiple Chinese policy-makers made public statement on the Chinese currency and monetary policy. On February 19, China’s Central Bank Deputy Governor said that Chinese monetary policy should be moderate and flexible in order to provide sufficient liquidity; yet the monetary policy should avoid being too loose which could weaken the currency. It sent out signals that the Central Bank is closely monitoring the Yuan and tends to maintain it within a reasonable range.

Chinese stocks extended gains this week after the domestic markets reopened. However, Chinese media suspects that gains in stocks may be temporary and the retracement is nearly over. Hexun News (a top leading media of finance news) published commentary on Friday saying that gains in stock prices seen over the past week might be holiday bonuses and not sustainable. The media also recommended Chinese investors to be cautious in trading equities next week. Amid uncertainty in the equity market, the Yuan is likely to be guided in a relatively stable manner and may not bring too much volatility.

A top event for China scheduled in less than two weeks is the annual National People’s Congress conference and Chinese People's Political Consultative conference. State agencies including the Central Bank have submitted their plans for 2016, which will be discussed at the top national conferences. Most Chinese investors and traders are waiting for new national strategies and policies to be announced at the conferences before they make any major moves.

Major event risk for Yuan pairs next week will come from China’s top counterparties, the US and Japan. US will release its fourth quarter GDP number, as well as Personal Consumption Expenditure along with some other key figures. Those reports can have direct impact on the Dollar/Yuan pairs in both on shore and offshore markets. Also, Japan will publish its January CPI reading, and last week, Japan reported worse-than-expected contraction in economy with a -1.4% of fourth-quarter GDP. This has put more pressure on the Japanese government to take additional steps to stimulate the economy. If the Bank of Japan decides to take additional easing steps, it will likely impact the Chinese currency as well.

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

DISCLOSURES

News & Analysis at your fingertips.