PBOC sets USD/ CNY reference rate for today at 6.6756 (vs. estimate at 6.6934)

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
• CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
• The previous close was 6.6921

A substantially stronger setting for the CNY (that is, lower USD/CNY) than was expected. An indication from the PBOC it'd like to stabilise the yuan at present. The PBOC has been steadily nudging the CNY higher than expected at the setting each day for over a week. Today's is a much bigger step. ITs 731 points from Friday's mid rate, this is the alrgest move between two mid-rate sestting since July of 2005.

The PBOC inject 10 yuan via 7 day reverse repos (rate remains at 2.1%)

• 10bn yuan mature today
• thus a net neutral

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