The US Dollar – Chinese Yuan currency pair is very interesting because it has two parallel rates at once: the official PRC (USD/CNY pair) and the so-called "offshore Chinese yuan" USD/CNH.There is nothing criminal here, and a separate course with the CNH ticker was specially created by the Bank of China and the leadership of Hong Kong to attract international investors, since the official yuan exchange rate (or, the so-called "onshore", has the CNY ticker) is strictly regulated by the state and is intended only for internal use and trading in the country.The CNY rate cannot deviate by more than 2% from the price recommended by the People's Bank of China.USD/CNH forecast for today onlineUse forecasts for today, compiled on the basis of signals from more than 15 technical analysis indicators, to verify your USD/CNH analytics.It is difficult to make an accurate forecast for USDCNH on your own, because regulating the CNY of the People's Bank of China, one way or another, but the offshore yuan is also regulated, so no fundamental factors or objective indicator readings can guarantee anything and accurately predict the actions of the government.So far, it looks like the Chinese leadership will continue to deliberately devalue the national currency in order to help its exports in the trade war with the United States.The USD/CNH chart is most closely related to the intra-Chinese USD/CNY, the differences with which are usually small.Below we will show an example of earnings on the USD/CNH currency pair and how much income it can bring.Read more: USD/SGD: exchange rate online, signals and forecast for todayGeneral characteristicsThe USDCNH US Dollar/Chinese Offshore Yuan currency pair is an exotic pair in the Forex market, most popular among traders from Hong Kong. The base currency is the American currency, which is purchased for Chinese yuan (direct quotation). The price is displayed in most terminals up to four characters after the separator (for example, 6,8626). In some cases, a trader may encounter the withdrawal of a five-digit quote (6.86250).USDCNH is a financial instrument, the level of volatility of which is quite commensurate with most popular Forex pairs (150-210 points per day). The greatest activity is manifested on Thursday, but Tuesday and Wednesday are also slightly behind in terms of trading volumes.By the hour, the greatest spikes in volatility are observed in the intervals from 00:00-02:00 and up to 13:00 GTM, which corresponds to the Asian and European trading sessions.Factors influencing the USD/CNH exchange rate and what quotes depend onWhen going to perform an analysis, it should be borne in mind that the pair with CNH began to appear at auction only since 2010, but since it almost completely repeats the movements of CNY, it is possible to take data for earlier periods based on the onshore rate.The difference in the value of the price between the pair presented in this review with the "offshore yuan" and the "onshore" exchange rate of the Chinese currency to the US dollar is, as a rule, only a few points, and their movement almost always occurs parallel to each other.Dollar and Yuan analytics: When trading the Dollar against the Offshore Yuan, a breakdown strategy works with placing pending orders before the opening of the Hong Kong and Singapore exchanges at the start of the Asian session (not at the opening of the Tokyo Stock Exchange at 00:00 GMT, namely, at 01:00 GMT, when trading starts in Hong Kong).In order to correctly predict the dynamics of the pair for the future and conduct trading with maximum profit, you need to be able to perform not only technical, but also fundamental analysis well, and for this, you need to have a clear understanding of the structures of the economies of both countries, whose currencies are present in the pair.The American economy is still the largest in the world and one of the most developed and efficient. The share of the services sector and trade accounts for about 79.6%. These are banking, law, consulting brokerage and other services, hotel and restaurant business, small and medium-sized trade. Industry gives the country an average of 19.2% of GDP. Agriculture accounts for the least – only about 1.2%.Read more: USD/JPY: chart, forecast for today, currency pair overviewThe United States is the leader today and in the near future does not intend to give anyone the world economic and political primacy, but China is constantly increasing its influence and is getting closer every year, having already moved Japan to third place.China, first of all, is known as an industrial power and a "world factory", but in fact the main place in terms of the percentage of the country's GDP is already occupied by the service sector – about 50.7% and only then – production from 40.7%. Agriculture also accounts for an impressive 8.6% of GDP, which is quite a lot in comparison with other countries.Tourism plays a big, but far from the main role for both countries. As for foreign trade, the United States is one of the main partners of China (trade with the "Celestial Empire" plays an important role for the United States), both in terms of exports and imports. A large trade turnover is conducted by China with countries such as South Korea and Japan; for the United States, it is Canada and Mexico.Comparison with other charts can be a good help for making a forecast. The maximum direct correlation on the daily timeframe for today is observed with: USD/HUF - 87.4%, USD/SGD - 86.2%, US Dollar Index - 86.2%, USD/PLN - 85.6%, USD/CZK - 85.6%, USD/CHF - 85.5%, USD/NOK - 84.0% USD/CAD - 83.9%. The greatest inverse correlation is seen with the Euro/Dollar – -85.5%, NZD/USD – -83.6%, as well as platinum and palladium charts – -81.7% and -80.6%, respectively.Read more: GBP/USD exchange rate (Online Chart), forecast for todayThe main factors on which the dynamics of the pair depends should first of all include:Purchasing power of the main trading partners (USA, Japan, South Korea). If they grow, the yuan will strengthen, and the pair will go down accordingly.Energy prices and raw materials in general (China is the "factory of the world", which constantly requires a huge amount of material and energy to produce goods). Falling prices for raw materials and oil strengthens the yuan, respectively, the pair is falling.The size of interest rates and statements of the heads of the Central Bank.Reduction/increase of customs duties on Chinese goods in large importing countries of Chinese products.Features of the currency pairAn important feature of this instrument is the low price of a point, which will be ten times less in comparison with the Euro /Dollar, coupled with a decent spread and average volatility, does not make USD/CNH attractive to scalpers.But medium- and long-term positional traders may like the pair. However, there is one significant nuance – large swaps, which, if you hold buy positions for a long time, can cause significant losses, however, when opening long-term sell orders on a bearish trend, there is a good opportunity for Carry ...
Today, investors' attention is focused on the most important macroeconomic and political events. In Sweden, the results of a survey of inflation expectations conducted by the Origo group (formerly Prospera) are being published. The Riksbank focuses on the need to keep long-term (5–year) inflation expectations close to the target of 2%, which has been stable in the range of 1.9-2.1% since the beginning of 2024. We do not expect any sharp deviations from these values this month.In the UK, inflation data for January is on the agenda. Both the general price level and the base indicator are expected to rise, which is facilitated by higher prices for fuel and educational services. Service inflation is projected to rise to 5.1% against the expected 5.0%. This will be the last inflation report before the March meeting of the Bank of England, where markets do not attach much probability to a rate cut. Analysts believe that the next interest rate cut is possible only in May.This morning, China is publishing data on new home prices, which serve as an important indicator of the state of the real estate market. Recent reports show that the rate of price decline has slowed, which is in line with other indicators indicating a moderate recovery in housing demand. We expect prices to remain at about the same level in January as in December, indicating market stabilization.Market news and recent eventsIn the United States, President Trump has announced plans to impose tariffs of 25% on automobiles, pharmaceuticals, and semiconductor chips. Although no specific date has been announced for the start of tariffs, he also confirmed the launch of tariffs on steel and aluminum from March 12. The markets will try to assess the sincerity of these statements today.Regarding the situation in Ukraine, American and Russian officials held their first meeting in Saudi Arabia aimed at ending the war – without Ukraine's participation. Both sides agreed to lay the foundations for future cooperation, with discussions on territorial arrangements and security guarantees expected in the future. Putin's foreign policy adviser noted that the United States and Russia are working on preparing a meeting between Trump and Putin.Sweden has published a detailed inflation report for January, which showed annual CPI growth slightly below expectations – 0.9% against the projected 1.0%, with a monthly change of 0.0%. At the same time, the CPIF baseline indicator excluding energy confirmed a preliminary value of 2.7% per annum, which may signal an increase in inflationary pressure.The UK has released a report on the labor market for December and January, where the unemployment rate remained stable at 4.4%, and the number of people employed exceeded expectations, largely due to data on the public sector. This indicates that the Bank of England is likely to continue its cautious easing policy.In Germany, the February ZEW index rose above expectations, reaching -88.5, the highest in four months, while expectations for future market improvements increased to 26.0, significantly exceeding the forecast of 20.0. These data indicate the continuation of positive surprises in the German economy, despite the general stagnation, which, in turn, is a signal of stability.Market analysisStock markets continued their moderate growth. Yesterday, assets increased slightly despite the fact that the American stock exchanges were closed. European markets added about 0.5%, setting a new closing record for the year, and shares in the defense sector rose especially noticeably – Swedish SAAB recorded an increase of 16% per day and 30% per week. Markets in Asia are also showing strong positions, with South Korean stocks up 2% and some countries seeing significant annual gains of up to 10%. US index futures are slightly higher today.The debt market in Europe is experiencing an increase in government spending on defense and assistance to Ukraine. The EU is considering various financing mechanisms for these costs, which has caused government bond yields to rise, although spreads between peripheral and central countries remain narrow, indicating there is no clear desire to flee to safety.In the foreign exchange market, the Japanese yen showed the best dynamics among the G10 currencies, which was facilitated by the strong growth of the Japanese economy in the fourth quarter of 2024. EUR/USD is holding just below 1.05, while USD/CAD has stabilized around 1.42 following the release of Canada's January CPI, in line with expectations. The EUR/GBP exchange rate dropped to 0.83, and the following changes are observed in the Scandinavian region: EUR/SEK dropped below 11.22, and EUR/NOK – below 11.64. These movements indicate continued pressure on regional ...
The energy crisis in the U.S. is growing, already affecting one in six households. 20 million families across the country simply can't pay their bills.How much are utilities in the U.S. already short?Electricity debts are growing exponentially; the amount has doubled in just 2.5 years:pre-Covid - $8 billion nationally;December 2021 - $13.1 billion;June 2022, $16 billion.The least protected, low-income segments of the population are under attack. Incidentally, they are the ones who have been hit by the main covid restrictions: from 2019 to mid-2021, debts were growing mainly because COVID kept them out of work. Now this problem has disappeared, but another one has appeared: it is possible to work, the money is paid, but it is eaten up by inflation: food and fuel have become extremely expensive.In Europe and Great Britain the crisis is even more acute. The local authorities have already earmarked $280 billion to ease the energy crisis. And in the U.S., aside from a small $4 billion Liheap subsidy program, there is nothing yet, and new aid laws are still being drafted.What can investors expect from the Utilities sector next?It is not easy for investors in such a situation, forecasts on Utilities stock prices are foggy.On the one hand, rates for individuals are strictly regulated. If overdue debts become even higher, the authorities will be reluctant to raise prices.On the other hand, if they fail to raise prices in the B2C segment, power supply companies will be able to pass on the costs to the B2B segment.Doubtful ideas for investment: a list of utilitiesAnd if so, investors should avoid regulated companies with a large share of the B2C segment, viz:Dominion Energy (D);Duke Energy (DUK);PG&E (PCG);Xcel Energy (XEL).In addition, their equipment runs on natural resources, including gas, which are more expensive than others.Among independent energy producers, NRG Energy (NRG) has the worst prospects, since its facilities are mainly powered by coal and natural gas.Who looks promising in the Utilities sector?The power generating companies with water capacity are much less likely to be affected by the crisis:American Water Works (AWK);Essential Utilities (WTRG).Renewable energy supply companies will also fare well:Constellation Energy (CEG);Algonquin Power & Utilities (AQN).Vistra Corp. (VST) will be neutral, as its capacity is more diversified between gas, nuclear and ...
Chinese investors come out to mass protests. For example, on July 10, thousands of people came to the branch of the People's Bank of China in Zhenzhou, since their deposits in 4 banks have been frozen since April:Yuzhou Xinminsheng Village;Zhecheng Huanghuai Community;Shangcai Huimin County;New Oriental County Bank.How it happened: why depositors lost access to their savingsThere are a lot of regional private banks in China, they are also called "rural". According to the law, they must carry out their activities exclusively "at the place of residence". But in practice, this did not prevent them from attracting deposits from people from all over the Middle Kingdom through online platforms - including Du Xiaoman Financial and JD Finance, owned by Baidu and JD.com . And the authorities just turned a blind eye to it.However, recently the national regulator accused a major shareholder of the four listed banks, Henan New Fortune Group, of illegally attracting depositors' money.Did Covid hit the discontented?The authorities, alas, are clearly not on the side of the victims.The first protests took place back in May, the next action was to take place in mid-June - cheated depositors from all over China were going to come to it. But then their electronic "health codes" suddenly changed from green to red, which means that a person is sick with covid and must stay at home in quarantine. So it didn't work out to get together.Well, at the rally on July 10, the security forces, both in uniform and in civilian clothes, penetrated into the crowd and began beating the protesters.But what about deposit insurance?In banks, customers were told that deposit products were legal and protected by the deposit insurance system. In China, deposits of 500,000 yuan (~$75,000) are guaranteed in case of bank bankruptcy. But if a government investigation finds the deposits "not in accordance with the law," then the depositors will never see their money.It is also unknown who exactly has to pay the debts of "rural" banks: local authorities or central ones? However, after the latest protests, it was reported that the first payments to victims of the banking industry should take place this Friday.What is happening in China in July 2022?Social tension in China is growing, and more and more often you can hear about the clashes of the population with the authorities: people are locked up in factories, then they do not give out deposits. But the 20th Party Congress is on the nose.China is not such a communist country. When it comes to financial pyramids and the interests of banks, such a draconian version of capitalism is flourishing in the country that Wall Street is resting.So far, the protests are centered around four small banks. In total, there are about 4,000 such "banks" in China, which collectively control assets worth $14 trillion. But who are they lending to? What if the problems of the first 4 swallows are directly related to problems in the real sector?For example, the combined sales of 100 leading developers have already "collapsed" by half, the construction sector (30% of China's GDP) can pull the entire Chinese economy with it. And this, in turn, is able to "test the strength" of a larger number of banks and the entire deposit insurance ...
Shanghai is the industrial center of China with the world's largest deep-water port in terms of cargo turnover. The closure of the city for a lockdown hit the retail trade hard, so after the information about the partial lifting of the bans appeared, the shares of retailers rose in price. Now the authorities are gradually opening supermarkets, shopping centers and pharmacies, allowing them to work at 75% capacity. But for retailers, this is a good sign of an increase in profits in the near future.The lockdown in China seriously affected the consumption of petroleum products and reduced the demand for black gold on the world market, which has already been reflected in Brent quotes. In the coming days, transport should start operating in Shanghai, which will reunite the most populous city with the main part of China, against this background, demand for petroleum products will begin to recover. An increase in industrial activity will also contribute to the growth of demand for black gold in the country, as the purchasing managers' index in the manufacturing sector (PMI) rose to 49.6 this month. Despite the fact that economic growth is indicated by data above 50, a sharp jump from 47.4 to 49.6 in May of this year already indicates a recovery in business activity of enterprises. Against the background of growing demand for petroleum products in China, we can also expect an increase in world prices for black gold to $120 per barrel of Brent.Retailers expect the shares of oil and logistics companies to rise, as they, too, should become beneficiaries of the recovery of the Chinese economy. In addition, the shares of electric vehicle manufacturers are expected to grow, as the country's authorities have included subsidies for electric vehicles in the list of stimulating economic activity. This will stimulate their sales and have a positive impact on the financial results of the ...
The People's Bank of China on Friday decided to reduce the reserve requirements for banks by 0.5 basis points to ensure sufficient liquidity in the financial system, according to the regulator's website.According to the central bank, this will release about 1 trillion yuan ($154 billion) of long-term liquidity into the economy. The reduction will not affect financial institutions that have a deposit reserve ratio of 5%.In explanation of its actions, the Central Bank said that since the beginning of this year, commodity prices have continued to rise, and some small and microenterprises have faced operational difficulties, such as rising costs.The last time the bank cut reserve rates was during the first wave of the pandemic in 2020.The new regulations come into force on July ...
Data released on Monday by China's statistics office shows that the country's economy continues to recover from the crisis caused by the coronavirus pandemic. According to the results of the 1st quarter, the gross domestic product showed an increase of 18.3% compared to the indicator for the corresponding quarter of last year. According to the forecast of the Chinese authorities, this year the growth rate of the economy may exceed 6%. At the same time, analysts predict an annual GDP growth of at least 8%. The State Administration of China also reported a 17.7% year-on-year increase in retail sales in April to 3.3 trillion yuan. The figure is significantly higher than the volume of sales before the outbreak of the pandemic. Thus, compared to April 2019, retail sales in the country increased by 8.8%. In the four months of this year, Chinese retail sales increased by 29.6% compared to a year ago. It reached 13.8 trillion yuan. The volume of oil and gas production in the country increased in the period from January to April by 1.9% and 11.6%, ...
China intends to reduce the volume of coal consumption. The maximum amount of carbon dioxide emissions will be reached in 10 years. As for carbon neutrality, its achievement is planned for 2060. This was stated by Xi Jinping. He also noted that the government will monitor the dynamics of coal consumption in the coming years. The reduction of the indicator is planned for the next five-year period, that is, starting from 2026. Xi Jinping believes that countries with advanced economies should pay more attention to issues related to the fight against climate change. In addition, they should assist developing countries in addressing these issues. According to Xi Jinping, the problems associated with climate change can only be solved by joint efforts. Countries should cooperate, not criticize each other. South Korean President Moon Jae-in said that the country intends to stop financing foreign power plants that run on ...
The index, which measures business activity in the services sector of the Chinese economy, in March reached the highest level since December last year. According to Caixin/Markit data, it was 54.3 points. At the same time, in February, the indicator was at the level of 51.5 points. The results of the survey also showed that Chinese companies are increasing their hiring. In March, the number of people hired exceeded the number of dismissed employees of companies. The Chinese authorities managed to cope relatively quickly with such a problem as the spread of the coronavirus. In this regard, the country's economy is successfully recovering from the crisis. However, prices for services continue to rise due to the increasing cost of consumable components. A similar situation is observed in the country's manufacturing industry, which hinders the faster pace of recovery of the Chinese economy. Companies have been raising prices for their products and services for eight consecutive months. Nevertheless, the index, which measures the degree of optimism of Chinese businesses about the state of the economy for the next 12 months, rose to the highest in the last 10 ...
