The exchange rate is expected to continue the current horizontal fluctuation trend

Huitong Network2month28Daily News - Tuesday(2month28day)The RMB/USD spot price has slightly increased for five consecutive trading days, with a significantly narrower fluctuation range; Appreciation this month0.13%. Traders say that the consensus on the fluctuation of the exchange rate range is becoming increasingly clear, and there is a clear lack of trading willingness in the market beyond actual demand. If there is no external driving force, the exchange rate is expected to continue the current horizontal volatility trend; The market is waiting for US President Trump's evening speech to provide more details on fiscal and tax policies.

They also stated that currently, both offshore and onshore markets, there is a continuous decline in interest in trading the renminbi. In addition, yesterday the State Administration of Foreign Exchange announced that foreign institutional investors can participateforeign exchangeThe derivatives business saw an upward shift in the domestic USD swap curve today, and the spread of one-year onshore swaps continued to narrow.
The Chinese yuan has risen for five consecutive trading days, with weak trading willingness waiting for Trump's speech
"Spot trading is really boring, there shouldn't be many opportunities in the short term, and I feel that the market trading willingness is not high, but this should be what the central bank likes," said a foreign bank trader.

Some Chinese bank traders have also stated that the participation of foreign institutional investors in foreign exchange derivatives business has no significant impact on the spot market, but it has pushed up the domestic US dollar swap curve, with one-year swaps rising at one point1,465Point, reaching a new high of one and a half years.

The State Administration of Foreign Exchange of China recently issued a notice stating that foreign institutional investors in the interbank bond market can handle RMB to foreign exchange derivatives business at qualified domestic financial institutions. This business complies with the principle of actual transactions and is limited to hedging foreign exchange risk exposure generated by investing foreign funds in the interbank bond market.

In response to market speculation about foreign investment profits in China, the official Weibo account of the People's Bank of China stated on Tuesday that foreign-invested enterprises can handle profit remittances normally. China has achieved current account convertibility, genuine and compliant international payments and transfers, including payments and transfers of goods, services, dividends, and other external payments and transfers, which can be directly processed at commercial banks with genuine and valid transaction documents.

In the global currency market, the Japanese yen was the only major developed country currency in the world to experience significant fluctuations on Tuesday, rising by approximately against the US dollar and euro0.33%As investors sought refuge before President Trump's congressional speech.
RMBhttp://news.fx678.com/news/keywords/cny.shtml