Yuan rate setting coming up – may flip for the first time in months

Given the slump in the US dollar there are some thoughts about that the People’s Bank of China reference rate setting for the yuan might have to invert.

For many, many months the PBoC have set the USD/CNY reference rate well below the prevailing market rate in order to support the yuan. The gap between the market rate and the mid-rate has narrowed in recent weeks, thanks largely to the surge in the JPY. And the USD depreciating also. That may change today.

Also coming up from the Bank are the Loan Prime Rates (LPR). I previewed this earlier:

• Its PBoC rate setting day, analysts unanimously expect an on hold decision

This article was written by Eamonn Sheridan at www.forexlive.com.