Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

USD/CNH: back to 2019

USD/CNH: back to 2019

Information is not investment advice

The risk-on sentiment started this week has moved potentially risky investments, such as emergency market currencies, the AUD, the NZD, and the CNH, higher against the American safe-haven – the US dollar.  Currently, the Chinese yuan is focusing on the levels of spring 2019. Should we expect further lows or it is just the short-term recovery of the Chinese currency? Let’s hear the analysts’ opinions.

Stimulus talks and election

 October is forecast to add volatility to the US dollar for two main reasons. Firstly, the United States enters the pre-election stage. The recent debate between the Democratic candidate Joe Biden and the Republican Donald Trump signaled a possible further escalation of tensions between the candidates ahead of November 3. Thus, we need to be prepared for more unexpected announcements and possibly compromising information. More analysis of the connections between the US election and the USD is presented in the article “TRUMP, ELECTION, USD: Cleveland debate”.

Another thing that is driving the USD crazy is the anticipation of an additional coronavirus stimulus package. According to the US Treasury Secretary Steven Mnuchin, he and the House Speaker Nancy Pelosi made progress in stimulus talks last week. Despite that, the House of Representatives voted for a delay of a stimulus bill yesterday in order to give more time to Mr. Mnuchin and Ms. Pelosi for discussions. For now, the Democrats persuade the Republicans to agree on the $2.2 trillion stimulus package. This is $1 trillion more expensive than the proposal by the Republicans. The next vote in the House of Representatives is scheduled for today. As a result, nothing is certain. If the policymakers fail to reach an agreement on support measures, the risk aversion will strengthen the USD.

Forecasts and technical outlook for USD/CNH

On October 1, USD/CNH has broken below the low of September 16 at 6.75 and started to go down towards the 6.7 level. If the USD gets positive momentum today, the pair will return above 6.75 level to the resistance at 6.8350. This scenario will go in line with the forecast by UOB Group, which expects consolidation between 6.75 and 6.8350 for the next 1-3 weeks. Alternatively, an agreement on stimulus may pull the pair to the low of April 2019 at 6.7. The breakout of that level will trigger further selling pressure towards the next strong obstacle at 6.6755.

USDCNHDaily.png

LOG IN

Similar

Earnings Season Forecast is Surprising

The second earnings season of 2022 has almost begun. From banks and tech stocks to cars and the retail sector: in this outlook, we covered the most promising releases of this summer and made several projections on the companies’ prospects.

Popular

It’s Time to Look at New Zealand

Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later