Analysts at ANZ Bank New Zealand Limited (“ANZ”) explained that the big news comes with the PBoC re-instating a 20% reserve requirement on some trading of FX forwards – a move akin to that on 1 September 2015 to help stem CNY declines after the August devaluation. Key Quotes: “In effect, 20% of notional is locked up for a year with no interest, making it more expensive to short CNY. USD/CNH spot fell on the news, falling from 6.89 to 6.84. Risk sentiment rose and emerging markets rallied.” “However, shortly after China’s Ministry of Commerce retaliated to Trump’s plan to increase the tariff rate from 10% to 25% on the previously announced $200bn of Chinese imports.” “Four tiers of tariffs ranging from 5 to 25% will be placed on over 5000 different products imported from the US. Officials said this was a “rational and restrained” response to the US action and their implementation is conditional on what the US decides.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NZD/USD: below the 21-hr SMA, risks to the downside, 0.6720 on the table FX Street 5 years Analysts at ANZ Bank New Zealand Limited ("ANZ") explained that the big news comes with the PBoC re-instating a 20% reserve requirement on some trading of FX forwards - a move akin to that on 1 September 2015 to help stem CNY declines after the August devaluation. Key Quotes: "In effect, 20% of notional is locked up for a year with no interest, making it more expensive to short CNY. USD/CNH spot fell on the news, falling from 6.89 to 6.84. Risk sentiment rose and emerging markets rallied." "However, shortly after China's Ministry of Commerce retaliated to Trump's plan… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
