Yuan Flat as Dealers await Trump

In the spot market, the yuan opened at 6.9253 per dollar and was changing hands at 6.9258 at midday, 13 pips weaker than the previous late session close and 0.03 percent weaker than the midpoint. “There is no clear direction where the yuan will move,” said a trader at a Chinese bank in Beijing. The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 96.14, weaker than the previous day’s 96.16. The dollar trod water early on Wednesday, showing little inclination to move against major peers such as the euro and yen before Trump’s news conference. Despite recent yuan strength in both onshore and offshore markets amid surging offshore yuan borrowing rates, market players remain bearish on the yuan’s outlook. “I see a sooner-rather-than-later test of the 7 level, which could occur after the Lunar New Year break, when interbank dealers will likely stoke their depreciation engines,” said Stephen Innes, a senior trader at OANDA. The week-long Lunar New Year holiday will start at the end of this month

CNBC via REUTERS HK

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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