Mixed session for the Yuan ahead of China Congress

SHANGHAI, Oct 17 (Reuters) – China’s yuan slipped below a key threshold against the U.S. dollar on Tuesday morning, in the wake of a weaker official midpoint and higher corporate demand for the greenback. Prior to Tuesday’s market opening, the People’s Bank of China set its midpoint for trading at 6.5883 per dollar, 44 pips or 0.07 percent weaker than the previous fix of 6.5839. The weakness in the official fixing reflected the dollar’s gains overnight in global markets.

But they expect it to stabilise around the current level in the near term. Market participants’ trading in their own accounts was marginal ahead of the Communist Party Congress, which kicks off on Wednesday. During the congress, authorities are likely to push for stability in the exchange rate. “Unquestionably, the market is sitting tight while keeping eyes peeled and ears to the ground for any groundbreaking policy shift” to come from the Congress, said Stephen Innes, head of Asia-Pacific trading at OANDA, in a note. Investors were also awaiting China’s third-quarter GDP growth data, due on Thursday.

Daily Mail UK via Reuters

 

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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 currently 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. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, 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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