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21 Apr 2016
USD/CNY: narrower range contemplating the Fed - BTMU
Analysts at Bank of Tokyo Mitsubishi explained that USD/CNY remains in a slightly narrower range.
Key Quotes:
"Price action suggests 6.50 may be tough resistance to break near term (USD/CNH has bounced off of 6.50 four times in the last week)."
"Traders are clearly waiting for the next signal. Advance consensus estimates have CFLP manufacturing PMI in April flat, which just about describes the mood in markets, too."
"Unusually, MOFCOM sounded downbeat about the March trade #s beat in an MNI interview, suggesting maybe April's #s won't look so rosy. As a team, we all expect the ECB, FOMC and BOJ to be on hold in April. Given the very low market odds for a June Fed rate hike, the risk is probably slightly to the USD upside if the FOMC inserts more aggressive language."
Key Quotes:
"Price action suggests 6.50 may be tough resistance to break near term (USD/CNH has bounced off of 6.50 four times in the last week)."
"Traders are clearly waiting for the next signal. Advance consensus estimates have CFLP manufacturing PMI in April flat, which just about describes the mood in markets, too."
"Unusually, MOFCOM sounded downbeat about the March trade #s beat in an MNI interview, suggesting maybe April's #s won't look so rosy. As a team, we all expect the ECB, FOMC and BOJ to be on hold in April. Given the very low market odds for a June Fed rate hike, the risk is probably slightly to the USD upside if the FOMC inserts more aggressive language."