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
  • “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:

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:

Onshore yuan update:

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