The Currency analytics
By Steven Anderson
Yuan momentum keeps building. Societe Generale analysts said February 10 that China's currency has now rallied for 11 straight weeks, pushing the USD/CNY exchange rate…
The streak looks pretty solid right now. China's economic data has been getting better, and that's boosting confidence in the Yuan big time.
Markets are basically holding their breath.
The People's Bank of China hasn't said anything about the Yuan's run-up yet. That silence is making traders nervous because the PBOC's next move could flip the whole trajectory.
February 10 saw the Yuan trading at 6.91 per dollar, just a hair away from that big 6.90 resistance point.
U.S. economic data keeps throwing curveballs too.
Jerome Powell's comments last week about taking a cautious approach to rate hikes have weakened the Dollar somewhat.
China's GDP figures drop February 15, and HSBC analysts expect these numbers to give more clues about the nation's economic health.
Behind the scenes, there's more happening. Sources within China's Ministry of Finance say top financial policymakers will meet February 20 to discuss recent currency movements.
Frederic Neumann from HSBC pointed out something interesting about capital flows. He said, "China's bond market has seen increased foreign interest," and that influx of money…
The Shanghai Stock Exchange is set to react February 21 to all these currency developments. Analysts think Yuan moves could really impact stock performance, especially for…
February 28 brings China's manufacturing PMI data, another key piece of the puzzle. The manufacturing sector drives a lot of China's economic growth, so traders will be watching…
The U.S. Treasury's role can't be ignored either. Their semi-annual currency report comes out in March, and there's always the risk they could label China a currency manipulator.
Right now, the Yuan's 11-week winning streak has everyone's attention. The 6.90 level looks vulnerable, and a break could trigger algorithmic buying that pushes the currency even…
The PBOC's continued silence leaves markets guessing about their tolerance for further appreciation.