According to analysts at Rabobank, yesterday CNH (offshore) fell like a stone and at one point it traded past 6.80 and then today the PBOC’s CNY fixing was set at the lowest since 2016 at 6.7671 – around 600pips, or 1%, lower than the day before.
Key Quotes
“As a result, at time of writing CNH had tested past 6.8350 and was trading at 6.8183. That is through the line in the sand I had thought the PBOC would set before they seemed to set 6.70. Now perhaps we don’t have any lines or any sand at all.”
“The timing of when we move through the psychological 7 level is all political. And politics is pretty volatile right now.”
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