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

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and specialises in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is based in Singapore as the Head of Trading Asia Pacific with OANDA.Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Garvin Guy Butler, and 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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