USD/CNY mid point for today set by the People’s Bank of China
– Friday’s close was 6.3530
– Friday’s mid point was set at 6.3459
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Put those two together (strong NFP is bringing the Fed ‘lift off’ closer, likely in December, while the data from China is arguing for more PBOC easing) and it should be a negative for the yuan. On the other hand, we’re waiting for an announcement from the IMF this month on inclusion into their SDR basket … which will likely keep the PBOC desiring yuan stability.