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- USD/CNH justifies bullish options market signals to refresh all-time high
USD/CNH justifies bullish options market signals to refresh all-time high
USD/CNH advances for the second consecutive day to renew the record high around 7.3740, before retreating to 7.3360 during Tuesday’s Asian session.
In doing so, the offshore yuan currency (CNH) pair tracks bullish signals from the options market as a one-month risk reversal (RR) ratio of calls to put rose for the second consecutive day, as well as snapped a two-week downtrend.
That said, the daily RR prints 0.045 as the latest figure, per Reuters, while the options market gauge prints the first weekly positive number of 0.045 in three by the end of Monday’s North American trading session.
USD/CNH upside could be linked to the fears surrounding China’s economic growth as Xi Jinping holds the lead command for the third consecutive term. “China's next premier, who will take office in March, will have few options but to step up stimulus to revive an economy ravaged by COVID-19, policy insiders and analysts said on Monday, as the unveiling of Xi Jinping's new leadership team rattled markets,” said Reuters.
Also read: USD/CNH Price Analysis: Stays firmer inside immediate rectangle despite upbeat China GDP
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