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19 Mar 2014
USD/CNH: New 10-month high, watch WMP structures above 6.20
FXStreet (Bali) - USD/CNH or offshore Yuan, is under intense buying pressure at the open of Chinese trading, with the market over-reacting to a slightly higher fix in USD/CNY.
USD/CNH jumped to a fresh 10-month high of 6.1873 after USD/CNY fix came at 6.1351, just 10 pips higher from yesterday's. There are growing concerns that any move above 6.20 may see exotic WMP structures triggered, and potentially lead to a further follow through as positions get squeezed.
USD/CNH jumped to a fresh 10-month high of 6.1873 after USD/CNY fix came at 6.1351, just 10 pips higher from yesterday's. There are growing concerns that any move above 6.20 may see exotic WMP structures triggered, and potentially lead to a further follow through as positions get squeezed.