Wednesday saw no further progress in the administration's removal of the Fed's Lisa Cook. The FX environment remains choppy, but we note the continued low fixings in USD/CNY – seemingly a move by Beijing to preserve the purchasing power of households and boost consumption. Elsewhere, healthy car sales data in Germany can provide some support to the euro
It’s been a hectic April as the whirlwind of tariff news after Trump’s 'Liberation Day' announcement consumed markets. As we have reached a period of relative calm, it’s a good time to reflect on the developments of the last month and how they have impacted the USD/CNY, which has come full circle this month
• The People’s Bank of China has set the USDCNY fixing above 7.20 for the first time since September 2023, and the market may interpret this as a green light for USDRMB to rise to 7.5 to offset the tariff impact.
Despite a volatile fortnight in global FX markets, USD/Asia has stood out for its relatively stability with most pairs moving within a 0-1.5% range.
