year after RMB’s sudden devaluation on Aug 11, 2015, China largely succeeds in
its objective of revamping the FX mechanism to make RMB more market oriented
and relative stable to a basket of currencies.
USD/CNH range bound between 6.6250 and 6.6740 since the beginning of August. 1
reserve dropped slightly in July, as a stable
RMB has eased downward pressure on China’s reserve.2
USD/CNH will be
trading in a slightly upward bias as recent weaker-than-expected economic data
suggest China might be running out of policy options to stimulate its economy.
The medium to
long term outlook for USD/CNH is still moving higher in an orderly fashion with
a possible target of 6.75 by year end.
sought stability and will prevent the RMB depreciating too fast.
overnight long USD liquidation has abated, although there were no real impetus
for the move except that risk sentiment appears to be better.
The greenback reversed
course after the disappointing US productivity data and market players used the
opportunity to pare longs USD positions established after Friday’s jobs
Momentum for the USD carried over from Friday following the solid US employment
jobs report was quite solid with the headline non-farm payrolls coming in at
+255K vs 180K expected.
USD is under some pressure this morning (DXY -0.6%) despite higher US bond
yields (10’s +5bps 1.55%).
continues and FX volumes are below normal with holidays in Canada, Australia
Manage Currency Risk as You Grow Your Business Globally
Silicon Valley Bank can help you protect your company with foreign exchange capabilities that allow you to move money across borders seamlessly, minimize foreign currency risk and maximize your returns. Our advisors and traders combine expertise and the latest currency hedging tools to help you buy, sell and operate effectively in an increasingly integrated global marketplace, and gain a competitive advantage.
We offer competitive pricing and trade in virtually all freely traded and non-restricted currencies on the global inter-bank market, directly from our trading floor.
We take a personalized and consultative approach to managing your global currency risk. Through a large variety of foreign exchange services, our goal is to help you protect the U.S. dollar value of your foreign currency revenues and transactions, control the cost of your foreign currency payments, minimize the translational impact on your balance sheet and mitigate the impact on your company's earnings due to conversion of foreign currency cash flow. Among our services:
Foreign Exchange Hedging Basics
Guide to Trade Finance
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. Opinions expressed are our opinions as of the date of this content only. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.
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