USD/CNY Fundamental Forecast – February 1, 2016

The USD/CNY added 10 points to 6.5762 as the greenback gained in the morning session.  Chinese markets remained in positive territory with the Shanghai composite gaining 2 percent while the Shenzhen composite was up 2.13 percent. Hong Kong's Hang Seng index was up 1.82 percent.
Biggest gainers on the index were brokerages Orient Securities, up 9.98 percent, and Huatai Securities, gaining 9.36 percent. China Railway Group was also up 9.94 percent.
Some analysts believe equity markets might be reaching a turning point soon, after a rough month of sell-offs from Tokyo to New York.
China's yuan edged up against the dollar on Friday and is set for a mild weekly gain after the central bank fixed its daily midpoints stronger over the past week. Beijing has also taken further steps to control the country's capital outflows to support the Chinese currency. "The market remained flattish, with all eyes on the central bank's guidance of late," said a dealer at a Chinese commercial bank in Shanghai.
"Even if there will likely be more forex demand next week, the yuan might not swing wildly," said the same trader in Shanghai. Traders expected increased foreign currency purchases by corporates and individuals next week to meet requirements ahead of the Lunar New Year, which falls on Feb. 8 this year. The People's Bank of China (PBOC) set the midpoint rate at 6.5516 per dollar prior to market open, 0.02 percent firmer than the previous fix 6.5528. The midpoint has been fixed firmer every day over the past week.
Eracash.com - The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.

All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. Eracash.com bears no responsibility for any trading losses you might incur as a result of using any data within the Eracash.com