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
Mixed
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
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
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • #Gold saw its worst performance the past 5 days in 5 months as longer-dated government bond yields in developed countries rose Could this be the beginning of a turning point in #XAUUSD? https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/08/15/Gold-Price-Outlook-Will-XAUUSD-Brush-off-Worst-Week-in-5-Months.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/x2Indk3b7P
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/PT09ZsIOCa
  • The US #Dollar may rise, buoyed by haven demand as fiscal stimulus talks stagnate and swelling tensions between Washington and Beijing sink trade talks. Get your #currencies update from @DanielGMoss here: https://t.co/Wcw9PDUr67 https://t.co/gnYZYl6aLV
  • Upside in #CrudeOil struggling ahead of #OPEC meeting. Cartel likely to maintain wait and see approach. Get your #commodities update from @JMcQueenFX here: https://t.co/gNHHKoTUzm https://t.co/eF40DRIBJ5
  • #Gold had some big moves last week, and while vol is expected to die down a bit, it will be important to see if gold can hold its ground in the coming days/weeks. Get your #metals update from @PaulRobinsonFX here: https://t.co/N8a84hRnHN https://t.co/3fjodPHTDm
  • The S&P 500's refusal to hit a record and Dollar's anchor to range this past week is sign of summer liquidity conditions, but the quiet is not insurmountable. 'S&P 500 Record and Dollar Break Look to Stimulus and Trade to Override Seasonality' https://www.dailyfx.com/forex/video/daily_news_report/2020/08/15/SP-500-Record-and-Dollar-Break-Look-to-Stimulus-and-Trade-to-Override-Seasonality-.html https://t.co/mbvPkdQfYl
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkcMZBK https://t.co/kFk6ccU3Sk
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/aXSB0bG3y0
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/1G7CRsegRX https://t.co/i342ipPuvW
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/tHp0Nb3Tr5
China's Market News: Offshore Yuan at Cross Roads Amid Widened Spread

China's Market News: Offshore Yuan at Cross Roads Amid Widened Spread

2017-02-06 19:42:00
Renee Mu, Currency Analyst
Share:

This daily digest focuses on Yuan rates, major Chinese economic data, market sentiment, new developments in China’s foreign exchange policies, changes in financial market regulations, as well as market news typically available only in Chinese-language sources.

- The offshore Yuan maintained stronger than the PBOC’s fix and the onshore Yuan on Monday.

- Hong Kong is the major hub for capital flowing into mainland in terms of foreign direct investment.

- Would you like to know more about trading? DailyFX webinars are a great place to start.

To receive reports from this analyst,sign up for Renee Mu’ distribution list.

Yuan Rates

- The PBOC lowered the Yuan by -50 pips or -0.07% against the U.S. Dollar to 6.8606 on Monday, the weakest level since January 20th. The onshore Yuan was slightly stronger than the guided level, with the USD/CNY trading at 6.8599 as of 10:30am EST. The offshore Yuan, on the other hand, was over 500 pips stronger than both the onshore Yuan and the Yuan fix, with the USD/CNH trading at 6.8093.

USD/CNH 1-Day

China's Market News: Offshore Yuan at Cross Roads Amid Widened Spread

Prepared by Renee Mu.

An offshore Yuan stronger than the onshore Yuan is less common, though not necessarily causes a major concern. However, the offshore rate has been stronger than the PBOC’s guided level since January 4th, except on January 27th and 30th when the daily fix was not updated due to the Lunar New Year. Without the regulator’s recognition, the offshore Yuan’s strength may not be sustainable and thus, traders will want to be cautious about near-term reversals.

China's Market News: Offshore Yuan at Cross Roads Amid Widened Spread

Data downloaded from Bloomberg; chart prepared by Renee Mu.

- The CFETS Yuan Index, the primary measure of the Yuan against a basket of currencies, fell -0.19% to 94.03 last Friday, marking it the third consecutive drop on a weekly basis. Over the same span of time, the BIS Yuan Index declined as well, by -0.30% to 95.26 while the SDR Yuan Index rose +0.08% to 95.43.

China's Market News: Offshore Yuan at Cross Roads Amid Widened Spread

Data downloaded from Bloomberg; chart prepared by Renee Mu.

- The PBOC suspended open market operations on Monday despite that there were 150 billion Yuan reverse repos to be matured on the day. This is seen as a further move that the Chinese regulator plans to bring monetary policy back to neutral from “slightly loose”. From Tuesday to Friday, there will be additional 475 billion Yuan of reverse repos to be matured. Market participants will want to keep a close eye on whether the PBOC will continue to withdraw liquidity.

Market News

Sina News: China’s most important online media source, similar to CNN in the US. They also own a Chinese version of Twitter, called Weibo, with around 200 million active usersmonthly.

- Foreign investors’ holdings in Chinese government bonds dropped -1.9 billion Yuan to 421.8 billion Yuan as of the end of January. This is the first decline on a monthly basis since October 2015. A weaker Yuan may have impacted foreigners’ interest in Yuan-denominated bonds.

Chinaforex News: a news agency administrated by SAFE

- Foreign Direct Investment (FDI) to China rose +4.1% in 2016 to 813.2 billion Yuan ($126.0 billion) from a year ago. In specific, FDI from Hong Kong was $87.2 billion, taking up the most of all. This does not mean all the investment was made by Hongkongers; rather, it shows that the majority of capital flowing into mainland was through the financial hub - Hong Kong. Investment to China directly from other countries and regions, especially Western countries, was much lower than from Hong Kong: it was $6.2 billion from the U.S., $3.1 billion from Japan, $2.7 billion from Germany and $2.2 billion from the U.K.

To receive reports from this analyst,sign up for Renee Mu’ distribution list.

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

DISCLOSURES

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.