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Trading news
15 Feb 2013
Forex Flash: Bearish tone for USD/CNY ahead - BTMU
Bank of Tokyo Mitsubishi UFJ analysts can see a bullish tone ahead for USD/CNY and see a range of 6.2150-6.2350 forming.
They note that the onshore spot market was closed this week due to the Chinese Spring Festival and the PBoC intentionally set a stable fixing before the long holiday between 6.2680-6.2900. They write, “As the Chinese economic data looks brighter, we expect a steadily lower fixing back towards 6.2700 in the coming week when the Chinese markets reopen. Spot CNY is expected to trade in the 6.2150 – 2350 range, with the yuan likely to continue trading near the lower band ahead of the National People’s Congress in March.”
They note that the onshore spot market was closed this week due to the Chinese Spring Festival and the PBoC intentionally set a stable fixing before the long holiday between 6.2680-6.2900. They write, “As the Chinese economic data looks brighter, we expect a steadily lower fixing back towards 6.2700 in the coming week when the Chinese markets reopen. Spot CNY is expected to trade in the 6.2150 – 2350 range, with the yuan likely to continue trading near the lower band ahead of the National People’s Congress in March.”