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
Subscribe
Please try again
EUR/USD
Bullish
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
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
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • $EURUSD is currently trading back above the 1.2060 level today, around its highest point since early March. This is the third time of the week that the pair has tested the 1.2060 level. $EUR $USD https://t.co/HUbjgKOhCR
  • 🇺🇸 New Home Sales MoM (MAR) Actual: 20.7% Expected: 12% Previous: -16.2% https://www.dailyfx.com/economic-calendar#2021-04-23
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.38%, while traders in US 500 are at opposite extremes with 66.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/3GlR9tqywl
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.44% Silver: 0.44% Gold: 0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/XSXYSS6tMi
  • 🇺🇸 Markit Manufacturing PMI Flash (APR) Actual: 60.6 Expected: 60.5 Previous: 59.1 https://www.dailyfx.com/economic-calendar#2021-04-23
  • Heads Up:🇺🇸 New Home Sales MoM (MAR) due at 14:00 GMT (15min) Expected: 12% Previous: -18.2% https://www.dailyfx.com/economic-calendar#2021-04-23
  • On Capital Gains Tax , DC sources says final bill likely to bring rate to high 30s not full 43% - Fox
  • The FTSE ran aground above 7000, an area of big focus. Further retracing looks to be in the cards. Get your #FTSE market update from @PaulRobinsonFX here:https://t.co/7igqha5hFj https://t.co/vG4EzjYdi6
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: 0.12% Wall Street: -0.13% FTSE 100: -0.48% France 40: -0.58% Germany 30: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/XrNsCuQLbT
  • Heads Up:🇺🇸 Markit Manufacturing PMI Flash (APR) due at 13:45 GMT (15min) Expected: 60.5 Previous: 59.1 https://www.dailyfx.com/economic-calendar#2021-04-23
Yuan Plunges After PBOC Changes Managed Regime, What to Expect Next?

Yuan Plunges After PBOC Changes Managed Regime, What to Expect Next?

Renee Mu, Currency Analyst

Talking points:

- The PBOC suspended proactively adjusting the Yuan fixing after implemented it for 7 months.

- The Chinese Yuan plunged over -0.6% against its U.S. counterpart following PBOC’s move.

- The regulator sees Yuan to float in a range and reserves the possibility of reusing the factor.

China’s Central Bank hints to have suspended proactive adjustments in the Yuan fixing, a daily reference rate that it issued to the market. On January 9th, the PBOC told that commercial banks, which provide quotes for the Central Bank to calculate the daily fixing, will decide by themselves whether to include the “counter-cyclical factor” in their quotes. This means that the regulator may have suspended efforts in countering against sentiment-driven volatility in Yuan rates. Following the move, Yuan jumped against the U.S. Dollar, down -0.62% as of 4:30pm ET.

USD/CNH 1-Day

Yuan Plunges After PBOC Changes Managed Regime, What to Expect Next?

Prepared by Renee Mu.

Behind this move, there is a reason. In March 2017, the Dollar Index (DXY) started its downward trend. Despite of a weak Dollar, the Yuan failed to gain against its U.S. counterpart and headed lower. In order to fix the mechanism, the Chinese regulator adjusted the calculation of the Yuan fixing, so the daily reference rate could be stronger than it was in the old formula. Although PBOC’s announcement on adding the new factor was made on May 24th, there were reports that the regulator had begun to use the new formula since early May and contributed to the pickup seen in the Yuan around that time.

Today’s announcement indicates two things: A) the regulator sees the Yuan floating in a range. Extremes in either direction is not favorable. There may not be specific cut-off points for the range. Yet, when the USD/CNH rises above 6.90 or drop below 6.50, investors would want to look for confirmation from the regulator before make further decisions. And B) the counter-cyclical factor was suspended, not removed. This means that the regulator could resume proactive adjustments when necessary.

Chinese regulators have been closely watch Dollar Trend. Find out DXY Outlook in Q1 2018.

USD/CNH 4-hour

Yuan Plunges After PBOC Changes Managed Regime, What to Expect Next?

From a technical point of view, the USD/CNH held its long-term support (2014 trend line), which can be seen in the 1-day chart. In the 4-hour chart, following PBOC’s announcement, the pair bounced back to 6.5084, 61.8% retracement of the rise after the de-pegging in 2015. It is currently testing 6.5376. The next levels to watch are 6.5493 and 6.5602.

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

DISCLOSURES