CNY Continues to Rise

USD/CNY Graph June 16, 2014

The tightly managed Chinese yuan, which recorded its biggest weekly jump in 2½ years last week, is set to continue on its appreciation path for the remainder of the year as the economy begins to stabilize, say strategists.

“The PBoC (People’s Bank of China) has sent a strong message – through much stronger midpoint fixings over the course of last week – that it doesn’t want further depreciation of the currency. It would like a period of stability going forward,” Khoon Goh, senior foreign exchange strategist at ANZ told CNBC on Monday.

“This is a reflection that authorities are more comfortable with how the economy is faring,” he said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza