USD/CNY Fundamental Forecast – February 22, 2016

Analysis and Recommendation:

The USD/CNY added 13 points to 6.5201 as the climb in oil prices helped sentiment close. There is a lack of data in the Asian session. The central parity rate of the Chinese currency renminbi, or the yuan, weakened by 34 basis points to 6.5186 against the US dollar on Friday, according to the China Foreign Exchange Trading System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two percent from the central parity rate each trading day, Xinhua news agency reported.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Chinese President Xi Jinping’s recent visit to the U.S. underscored yet again that Washington is reluctant to go along with his vision of “a new type of great power relations.”

The Chinese media has been trumpeting Xi’s “achievements” during the trip, yet the Barack Obama administration showed little willingness to play ball. “Even though it was Xi’s first official state visit to the U.S., no comprehensive U.S.-China joint statement was issued,” noted one political analyst in Beijing, adding that this was “unusual.”

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole. Please click on the links to find the most recent reports for this asset.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Monday, February 22, 2016

Government Bond Auctions

Date Time and Country

Feb 18 11:50 France Euro 6.5-7.5bn; 0.00% Feb 2019, 0.25% Nov 2020 OATs

Feb 18 12:50 France Euro 0.5-1bn; 1.85% Jul 2027, 1.80% Jul 2040

Feb 18 17:20 Sweden Details of I/L auction on Feb 25

Feb 18 19:00 US USD 7bn 30-yr TIPS

Feb 19 11:10 Italy Details of BTP€i/Zero-coupon auction

Feb 22 11:30 Belgium Holds OLO auction

Feb 22 11:30 Germany Euro 1.5bn Feb 2017 Bubill

Feb 23 n/a UK Details of Gilt auction on Mar 02

Feb 23 17:20 Italy Details of bond auction

Feb 23 19:00 US Holds 2-year note auction

Feb 24 11:10 Italy Holds BTP€i/Zero-coupon auction

Feb 24 11:30 Germany Euro 1bn 2.5% Jul 2044 Bund

Feb 24 17:20 Sweden Details of bond auction on Mar 02

Feb 24 17:30 US Holds 2-year FRN auction

Feb 24 19:00 US Holds 2-year FRN & 5-year note auction

Feb 25 11:03 Sweden Holds I/L bond auction

Feb 25 19:00 US Holds 7-year note auction

Feb 26 11:10 Italy Holds bond auction