Forex Flash: Yuan Pressure Points expose lack of PBOC action – ANZ
FXstreet.com (Barcelona) - Khoon Goh, Senior FX Strategist at ANZ notes that CNY appreciate pressure points remain strong but so far the PBOC has not accommodated in response.
He notes that this has resulted in divergence between the onshore USD/CNY spot (which is subject to the trading band) and the one-day forwards and CNH. He suspects that the PBOC is relieving some of this pressure via a significantly lower fix in the near term, rather than a widening of the band. He is currently short USD/CNY via NDF's notes that he feels comfortable holding this position moving forward.
He notes that this has resulted in divergence between the onshore USD/CNY spot (which is subject to the trading band) and the one-day forwards and CNH. He suspects that the PBOC is relieving some of this pressure via a significantly lower fix in the near term, rather than a widening of the band. He is currently short USD/CNY via NDF's notes that he feels comfortable holding this position moving forward.
Free Annual Reports
