Skip to content USDCNH Analysis – 6-June-2024
USD/CNH—After a brief rise, the offshore yuan stabilized at 7.26 per dollar, returning from losses in the previous session. This movement comes as the US dollar weakens due to increasing bets on Federal Reserve rate cuts. Investors expect two interest rate cuts from the Fed this year, with the first likely in September.
This expectation is based on recent data indicating a cooling US labor market.
Fastest Growth in China Services Since 2023
Adding to the positive market sentiment, a private sector survey showed that China’s services activity expanded in May at the fastest rate since July 2023. This marked the 17th consecutive month of growth in the services sector. Notably, staffing levels in the sector increased for the first time since January, indicating a sustained recovery in the second quarter.
Offshore Yuan Stability Key for Investors
Investors are eagerly awaiting tomorrow’s release of China’s trade figures, which could further influence market dynamics. This data will provide insights into China’s economic health and help investors make informed decisions.
Stabilizing the offshore yuan and the positive indicators from China’s services sector highlights a complex interplay of global economic factors. Staying informed about these developments is crucial for making sound investment choices in the current economic climate.
About The Author
Comments are closed.