The People’s Bank of China has set a reference rate for the onshore Renminbi (CNY) heading into the trading session.
USD/CNY is onshore origin. You are allowed to trade plus or minus 2% from this daily reference rate.
CNH is an offshore source. Trading range for USD/CNH is unlimited.
Rates that are significantly stronger or weaker than expected are usually considered signals from the PBOC.
The previous closing price was 6.7738
This is the last mid-rate setting before the long Lunar New Year holidays. China will be closed for the rest of next week.
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People’s Bank of China:
62 billion 7-day Reverse Repos (RR) injected in Open Market Operations (OMO), rate unchanged at 2.0%
Injection of 319 billion yuan at 14-day RRS, rate unchanged at 2.15%
RMB 55 billion RR matures today
So that’s a net injection of 326 billion yuan on the day. His total injection by OMO in one week was 245 billion yuan.
The mass infusion is done before the long Chinese New Year holiday that begins on January 21st. Demand for cash spikes during this holiday period.
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Euro
Euro
The Euro (EUR) is the official currency of the European Union (EU) and is used in 19 of its 27 member states at the time of writing. The euro is he second most traded currency in the forex market after the US dollar. The Euro was first introduced on January 1, 1999, replacing the European Monetary Unit. Then, in 2002, banknotes and physical euro coins entered circulation. When the euro was adopted, it replaced the national currency of the member EU member states. Since then, its rising value and importance in the global market have helped cement its position as one of the most important currencies in the FX market today. Exposure to two major economies. What factors affect the euro? There are several factors that affect the euro. As with most currencies, monetary policy has the most influence, in this case the European Central Bank (ECB). The ECB is responsible for regulating monetary policy, money supply, interest rates and the relative strength of the euro. For this reason, Euro Forex traders regularly listen to decisions and announcements from the ECB. Recent examples include the Greek debt crisis and Brexit, which could severely impact the euro. Finally, economic data for the bloc or major member countries such as Germany, France and Spain are also of interest. This includes retail sales, unemployment insurance claims, Gross Domestic Product (GDP), and more.
The Euro (EUR) is the official currency of the European Union (EU) and is used in 19 of its 27 member states at the time of writing. The euro is he second most traded currency in the forex market after the US dollar. The Euro was first introduced on January 1, 1999, replacing the European Monetary Unit. Then, in 2002, banknotes and physical euro coins entered circulation. When the euro was adopted, it replaced the national currency of the member EU member states. Since then, its rising value and importance in the global market have helped cement its position as one of the most important currencies in the FX market today. Exposure to two major economies. What factors affect the euro? There are several factors that affect the euro. As with most currencies, monetary policy has the most influence, in this case the European Central Bank (ECB). The ECB is responsible for regulating monetary policy, money supply, interest rates and the relative strength of the euro. For this reason, Euro Forex traders regularly listen to decisions and announcements from the ECB. Recent examples include the Greek debt crisis and Brexit, which could severely impact the euro. Finally, economic data for the bloc or major member countries such as Germany, France and Spain are also of interest. This includes retail sales, unemployment insurance claims, Gross Domestic Product (GDP), and more.