FXStreet (Delhi) – Tim Condon, Research Analyst at ING, notes that PBOC’s stronger fixing of CNY has helped to restore a bit of calm into global financial markets and as Chinese markets closed for today and tomorrow, it will help in restoring of a bit of risk on sentiment.
Key Quotes
“PBOC’s Stronger CNY Fixings have reduced anxiety about a maxi-devaluation and associated hard-landing fears. We are reviewing our yearend 6.55 USDCNY forecast for downward revision.”
“We credit the PBOC’s stronger fixings for helping to restore a bit of calm to financial markets yesterday. We also think the fact that financial markets are closed today and tomorrow for the Victory Day holiday contributed to restoring a bit of risk-on investor sentiment yesterday.”
“Yesterday’s USDCNY fixing was stronger than the previous day’s spot closing since August 20. We assume the stronger fixings have reduced anxiety about a maxi devaluation, and therefore about a China hard landing.”
(Market News Provided by FXstreet)