CNH: USD/CNY Fixing Edges Lower, USD/CNH Unchanged

The USD/CNY fix printed at 6.7917 slightly up on yesterday's result of 6.7898. The fixing is holding fairly steady under 6.7900 in recent sessions, while the error term is has fallen to +296pips (yesterday was +516pips). Broader USD shifts are mixed today haven't impacted sentiment in the USD/CNH space so far today. We were last 6.7586 - 6.7590, little changed for the session. 

• CHINA SETS YUAN CENTRAL PARITY AT 6.7917 TUES VS 6.7898

The S&P(ESU6) range overnight was 7452.75 - 7637.75, SPX closed +1.48%, Asia is currently trading around 7635. The market continues to build on its key day reversal at the back-end of last week. A huge turnaround by oversold Tech, but the turnaround from being on the precipice back to challenging new all-time highs is pretty impressive. Was that the easy move ? I suspect it might get a little harder back toward the highs but lets see how the week progresses. While the market continues to hold above 7250-7300 on the SPX the bulls remain technically in control and the price action looks pretty constructive. Resistance is now back toward the 7700 area in the ESU6 contract and I will be watching to see if this bounce is able to challenge above there and reassert the uptrend. 

• Jeffrey P. Snider on X: “The Fed and Wall Street want you focused on AI as the story of growth. Look at where the money is actually going. Hyperscalers are about to flood the market with tens of billions in bonds. That capital has to come from somewhere. Every dollar that funds a data center is a dollar not funding a mortgage, a bank bond, an industrial company.”  https://x.com/JeffSnider_EDU/status/2084398906540966147?s=20
• CNBC Tech: “Big Tech's Anthropic and OpenAI stakes are distorting the corporate earnings picture.”  https://x.com/CNBCtech/status/2084399752834117685?s=20
• Hedgie on X: “DeepSeek released its V4 Flash coding model on Friday at $0.28 per million output tokens. Claude Opus 4.8 charges $25 for the same output. That's a 99% discount, and V4 Flash debuted ahead of Opus 4.8 on Arena.ai's front-end coding leaderboard. Anthropic is holding out on price for now, but I don't think they can hold that line forever if DeepSeek and the flash models keep closing the capability gap.” https://x.com/HedgieMarkets/status/2084412496795119795?s=20
• The S&P 500 Index Average True Range(ATR) for the last 10 Trading days:  103 Points

Fig 1: S&P 500 Index Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P