USD/CNY: PBOC ramps up efforts to defend the yuan
The People's Bank of China delivers the strongest USD/CNY fix relative to expectations on record.
Share this:
The People’s Bank of China (PBOC) took its defense of the Chinese yuan to a whole new level today, fixing the USD/CNY midpoint more than 1,000 pips stronger than expectations at 7.2006. It was the strongest fix relative to expectations on record, continuing the recent trend of the PBOC counteracting market forces that threatened to push the yuan to fresh multi-decade lows against the US dollar.
The USD/CNH strengthened on the PBOC announcement, pushing lower to test 7.2860, the high hit of the previous cyclical peak struck in early July. With the yuan strengthening near-term, it’s helped to boost other Asian currencies such as the Japanese yen and Australian dollar against the US dollar.
-- Written by David Scutt
Follow David on Twitter @scutty
How to trade with City Index
You can trade with City Index by following these four easy steps:
- Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the market you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Iron ore bulls face a perfect storm as price tests major support
Deteriorating steelmaker profitability, seasonal weakness and bearish technicals are weighing on iron ore. But with the price testing critical support, there's genuine two-way directional risk despite the substantial headwinds facing bulls.
Silver Analysis Can XAGUSD hold above the 85 level
Recent price action in silver has been particularly relevant, as over the last five trading sessions XAG/USD has posted a significant gain, accumulating an increase of more than 18% over this period.
USD/CNH Forecast: New Year, Same Yu-an Strength
USD/CNH has been trending consistently lower within a bearish channel since the start of November, falling 2500 pips from near 7.14 to closer to 6.88 now – what are the levels to watch next?
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.