Eyes are on the PBOC for a cut to the MLF rate

There is an anticipation of a cut to the one-year rate on the People's Bank of China Medium-Term Lending Facility (MLF) expected Monday. The previous cut was back in January, by 10bps to 2.85%.

• analysts are split on a cut to the rate (to be fair its not a very transparent process and thus very difficult to call)

If there is a cut to the MFL rate it'd indicate a higher probability of cuts to the 1- and 5-year Loan Prime Rates (LPR) coming from the PBOC on the 20th (i.e. Friday this week).

The PBOC has allowed the yuan to depreciate, which should provide stimulus to the external sector (exporters):

Weekly USD/CNH candles.

eur EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term cnh