China is never too far away from EUR/USD, and this was very relevant at the wake of 2017. What’s next after the dawning days? Here is the view from Danske: Here is their view, courtesy of eFXnews: One of the most noteworthy trends in the early days of 2017 has been the volatility in the CNH/CNY markets. Similar to last year, the main driver appears to be concerns about rising outflows and fears of an acceleration in January following the resetting on 1 January of the USD50,000 quota that all Chinese citizens can buy every year. The Chinese authorities have in our view pre-emptively been tightening liquidity conditions in the CNH market to put a stop to the depreciation of the CNY versus the USD as well as introducing more administrative curbs on buying FX by Chinese citizens. Given that many hedge funds and other investors entered 2017 with significant short positions, the sharp rise in the CNH seen over the past two days probably relates to a squeeze of these short positions. Despite the strengthening of the CNH/CNY against the USD in recent days we still see a weakening of the CNY throughout 2017 due to the combination of weakening growth and concerns about high debt levels. For lots  more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch. The squeeze of short CNH positions is also one of the reasons for the upward move in the EUR/USD in our view, together with Fed worries about the strength of the USD in the minutes from the meeting in December. We still see the USD gaining strength vs. the EUR in the next months followed by an upward move in EUR/USD later this year. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next CAD: Why Is Consensus Lacking Direction; Where To Target? Yohay Elam 6 years China is never too far away from EUR/USD, and this was very relevant at the wake of 2017. What's next after the dawning days? Here is the view from Danske: Here is their view, courtesy of eFXnews: One of the most noteworthy trends in the early days of 2017 has been the volatility in the CNH/CNY markets. Similar to last year, the main driver appears to be concerns about rising outflows and fears of an acceleration in January following the resetting on 1 January of the USD50,000 quota that all Chinese citizens can buy every year. The Chinese authorities have… 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.