Back
28 Feb 2014
Flash: USD/CNY remains firm - ANZ
FXStreet (Barcelona) - Irene Cheung, FX Strategist,Asia at ANZ, sees potential for further upside in USD/CNY.
Key Quotes
"This morning, USD/CNY spot traded to a high of 6.1808, only a shade away from the top side of the daily fluctuation band (6.1826)."
"USD/CNH spot was heavy yesterday, and the spread with onshore spot widened again. Today’s price action in the onshore market has taken USD/CNH back up."
"We see continued risk of volatility in the onshore market, which will permeate into the offshore CNH market."
"Our 6m long USD/CNH ATMF straddle trade (initiated on 25 February, at 2.15% volatility, or at a cost of 122bps) is quickly approaching our target of 3.2% volatility. We move our target to 4%."
Key Quotes
"This morning, USD/CNY spot traded to a high of 6.1808, only a shade away from the top side of the daily fluctuation band (6.1826)."
"USD/CNH spot was heavy yesterday, and the spread with onshore spot widened again. Today’s price action in the onshore market has taken USD/CNH back up."
"We see continued risk of volatility in the onshore market, which will permeate into the offshore CNH market."
"Our 6m long USD/CNH ATMF straddle trade (initiated on 25 February, at 2.15% volatility, or at a cost of 122bps) is quickly approaching our target of 3.2% volatility. We move our target to 4%."