USD/CNH pops higher post PBOC fix

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/CNH is trading strongly higher at the open of markets in China following People’s Bank of China (PBOC) yuan fix, which saw a reference rate at 6.5118 vs 6.5314 last fix.

    USD/CNH has been trading steadily lower for the past week while Chinese markets were closed amid broad-based USD weakness as odds for further rate hikes this year evaporate, as suggested by the CME Fed fund futures.

    The rise in USD/CNH should be seen as a re-adjustment of the offshore yuan to the latest onshore Yuan fix. Going forward, the more the USD/CNH remains under pressure, the more it should underpin a potential recovery of risk appetite, assuming global markets also stabilize.
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