Onshore yuan looks set for its first weekly gain in three weeks

This week we had a 50 basis point cut to China’s Reserve Requirement Ratio (RRR), which appears to have lent the yuan enough support to break its three-week losing streak.

Barclays comments (via Reuters report):

• “China’s support for yuan assets and growth has intensified,
  but one-time impulses have struggled to alter fundamental
  dynamics,”
• “A 50-basis-point reserve requirement ratio (RRR) cut with
  the medium-term lending facility (MLF) rate on hold suggests a
  preference for liquidity management”

Earlier, from ANZ:

• PBoC, government stimulus in China are merely a “painkiller, not a cure” for the economy

And, earlier still, the PBoC continued with its efforts, underway for many months now, to support the currency and the reference rate setting every day:

• PBOC sets USD/ CNY reference rate for today at 7.1074 (vs. estimate at 7.1733)

Onshore yuan update:

This article was written by Eamonn Sheridan at www.forexlive.com. Source