CNH: CNH Little Changed, Still Lagging USD Weakness
May-20 22:17
USD/CNH tracks near 7.2160 in early Wednesday dealings, little changed for Tuesday's session. The pair found selling interest above 7.2250 during yesterday's Asia Pac session, but couldn't revisit sub 7.2100. Spot USD/CNY finished up at 7.2170, while the CNY CFETS basket tracker fell by 0.25% to 96.55 (per BBG). Broader USD sentiment was weaker, with the BBDXY and DXY indices finishing lower (US equities fell for the first time in six sessions). CHF was the best G10 performer, up 0.74% for Tuesday's session.
- Little has changed from a broader USD/CNH technical standpoint, we remain wedged between key levels of recent lows sub 7.1800, against highs above 7.2500.
- CNH has lagged renewed recent softness in broader USD sentiment. Dividend outflows, into Hong Kong, may be a near term headwind, whilst uncertainty on US-China trade discussions may be another. The market may feel more comfortable expressing bearish USD views elsewhere. The move lower in LPRs yesterday, and local bank deposit rates may have also been a factor, although the LPR cut was widely expected.
- CNH/JPY dipped under 20.00 on Tuesday but the move wasn't sustained.
- There is little in the way of local data events coming up in the near term. The Apr FDI figures are still due, whilst tomorrow we Swift global payments in CNY, Next week April industrial profits print on Tuesday.
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| Date | Time | Country | Event |
| 25-Apr | 0745 | FR | Manufacturing Sentiment |
| 29-Apr | 0700 | DE | GFK Consumer Climate |
| 29-Apr | 0800 | ES | HICP (p) / GDP |
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| 29-Apr | 1000 | EU | Consumer Confidence, Industrial Sentiment |
| 30-Apr | 0630 | FR | GDP (p) / Consumer Spending |
| 30-Apr | 0700 | DE | Import/Export Prices / Retail Sales |
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| 30-Apr | 0855 | DE | Unemployment |
| 30-Apr | 0900 | DE | GDP (p) / State level CPI |
| 30-Apr | 0900 | IT | GDP (p) |
| 30-Apr | 1000 | EU | GDP preliminary flash est. |
| 30-Apr | 1000 | IT | HICP (p) |
| 30-Apr | 1100 | IT | PPI |
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JGBS: Twist-Steepener Holds Going Into W/E, BoJ Gov Ueda Reiterates Caution
Apr-18 05:16
JGB futures are stronger, +18 compared to settlement levels, sitting near the middle of the range after a choppy session.
- “Governor Kazuo Ueda reiterates his stance that the central bank will carefully monitor if its economic outlook will be realized, accounting for the effects of US tariff measures, without preconception. The BoJ will raise the benchmark rate if the outlook is realized, Ueda says in response to questions in parliament.” (per BBG)
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