All about China, stocks and oil – TDS

By FXStreet FXStreet (Guatemala) – Cristian Maggio, Head of Emerging Markets Strategy at TD Securities explained just like the markets ended last week, we have started off on poor sentiment both in Asia and Europe, while the US is closed for Martin L. King day until tomorrow.

Key Quotes:

“Equity markets are again on the back foot, as well as commodities, not helped by the CNY fix that came in at the lowest level in nearly two weeks at 6.5590 to the dollar today. This has had beneficial effects on CNY and CNH trading, although the yuan fix remains below traded USDCNY.”

“At the time of writing, the pair is appreciating 0.09% to 6.5791 vs the greenback, while USDCNH is less directionally clear. A fairly strong move towards 6.5730 (daily low) accompanied early trading, with the pair turning bid before the London open and now exchanged lower again at around 6.5830. The result is that the CNH-CNY spread is around 40 pips, a level that is significantly below early Jan and Dec’s, and also some 230 pips lower than the average levels in November 2015.”

“Another piece of news adding to volatility today is the announcement from the PBoC that a new RRR that …read more

Source:: FX Street