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26 Apr 2013
Forex Flash: USD/CNH sees higher fixes, delay to widen the band? - RBS
FXstreet.com (Barcelona) - Again, anoter higher CNY fix in Asia today (lower USD/CNY). As RBS FX strategist Greg Gibbs notes, "the CNY fix was raised by 0.15%, for a move of 0.30% this week, and 0.77% since the beginning of the month."
Greg notes: "The faster appreciation in the CNY may represent efforts by the PBoC to reduce its intervention by allowing more flexibility. The market will continue to speculate a move to widen the band could come at any time, perhaps this weekend."
"Although the view of many is that it will not widen the band until spot is trading closer to the fix and thus the centre of the allowable band, signifying less speculative pressure for CNY gains" he added.
Greg notes: "The faster appreciation in the CNY may represent efforts by the PBoC to reduce its intervention by allowing more flexibility. The market will continue to speculate a move to widen the band could come at any time, perhaps this weekend."
"Although the view of many is that it will not widen the band until spot is trading closer to the fix and thus the centre of the allowable band, signifying less speculative pressure for CNY gains" he added.