7 Jan 2016
USD/CNH hints at another Yuan devaluation today
FXStreet (Bali) - USDCNH has spiked over 200 pips ahead of the Yuan fix, from 6.69 all the way up to currently exchange hands at 6.7132, with no signs of intervention overnight.
The early rise suggests that market participants are now expecting another Yuan devaluation by the PBOC today.
According to Nomura: "Our model projects the fix to be higher by 252 pips from the previous fix (6.5566 from 6.5314) and lower by 9 pips from the previous spot USD/CNY official close (6.5575)." As a reminder, CNY/CNH spread has gone through the roof, making new all time highs above 1700 pips.
The early rise suggests that market participants are now expecting another Yuan devaluation by the PBOC today.
According to Nomura: "Our model projects the fix to be higher by 252 pips from the previous fix (6.5566 from 6.5314) and lower by 9 pips from the previous spot USD/CNY official close (6.5575)." As a reminder, CNY/CNH spread has gone through the roof, making new all time highs above 1700 pips.