News Headline Summary

According to Commerzbank, there is widespread speculation that the PBoC will widen the trading band to better allow the market to clear

- We think this will be tricky for the PBoC however, since a widened band could simply encourage appreciation pressures, added the Commerzbank analyst, expecting CNY to continue, particularly on USD-CNY NDFs or USD-CNH forwards.

Update details:

- The USD-CNY has an allowed trading range of ±1% relative to fix.

Print 14:15, 03 Jan 2013 - FX Flows - Source: Commerzbank