CNH: USD/CNY Fix Set At 6.7892
The USD/CNY fix was set at 6.7892, against a BBG market estimate of 6.7536. The fixing was set slightly under yesterday's outcome (6.7899), the fixing error was little changed at +250pips (Wednesday's was +259pips). USD/CNH is a little higher post the fixing, last around 6.7610. The US Dollar has come under broad pressure following the FOMC this morning and is seeing the pair look to challenge the lower end of its recent 6.7500-6.8200 range.
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CHINA SETS YUAN CENTRAL PARITY AT 6.8109 TUES VS 6.8175
- CHINA SETS YUAN CENTRAL PARITY AT 6.8109 TUES VS 6.8175
JPY: FinMin Joins In FX Jawboning Post 162.00 Break
'JAPAN FINMIN KATAYAMA: WON'T COMMENT ON SPECIFIC FX LEVELS - [RTRS]
JAPAN FINMIN KATAYAMA: WILL RESPOND APPROPRIATELY TO CURRENCY MOVES AT ANY TIME AS NEEDED - [RTRS]"
"JAPAN FINMIN KATAYAMA: ACTION COULD INCLUDE DECISIVE ACTION AS AGREED IN JOINT STATEMENT WITH US - [RTRS]
"*KATAYAMA: ALL COMES DOWN TO TAKING RIGHT FX STEPS WHEN NEEDED" - BBG
FinMin joining in on the FX rhetoric post this break above 162.00. USD/JPY little changed so far, still close to session highs (last near 162.25/30).
USD: BBDXY - Bounces Off 1220 Support As Asia Ignores O/N Moves & Opens Weakly
The BBDXY range overnight was 1221.36-1223.36, Asia is currently trading around 1222. The USD has again found demand on a dip back toward the 1220 area. Instead of opening up stronger Asian Equities are all turning negative, this is not great price action for risk and is seeing the USD supported in our session. The first support which continues to hold remains toward 1216-1221 and then the 1208-1212 area. Having touched the initial target toward the 1225-1230 area, I suspect we will do some work around here initially. A sustained break above here though and we could see some real pressure being applied to the conviction of the USD bears. I continue to be skewed toward fading dips for the moment looking for another test of the 1225-1230 area at some point.
- Squawk on the Street on X: "I think the market is too hawkish - I would be shocked if we get a rate hike in July and I would be surprised if we get a rate hike this year," says Allianz’s @elerianm” https://x.com/SquawkStreet/status/2071612909717733568?s=20
- Robin Brooks on X: “We're currently at peak Dollar strength. The Dollar should have been falling after the peace deal, with safe haven inflows turning to outflows from the US, but the first Warsh Fed meeting changed all that. Speculative positioning is max long the Dollar…”
- The BBDXY Average True Range for the last 10 Trading days: 4.16 Points
Fig 1: BBDXY Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
