Canadian Dollar (CAD) to Chinese Yuan (CNY)
The Canadian Dollar is trading at 5.08 against the Chinese Yuan today, down -0.05% with a YTD return of -1.19%. The currency pair had an open rate at 5.0818, slightly lower compared to the previous close at 5.0887. CAD/CNY will have a day range that sits between 5.06 and 5.08, the 52-week range is anticipated to move between 4.82 and 5.31.
After dropping to the 5.04 level at the beginning of the month, CAD/CNY has experienced bullish movement, continuously jumping to an exchange rate around the 5.10 level and then falling within the 5.70-5.80 range.
Traders will be watching to see if CAD/CNY will make its way back to the 5.20 level that was last seen in fall 2020 but the strength of the loonie will be dependent on the continued success of COVID-19 vaccinations, low case numbers, and control of the new variant of the virus that has made its way to North America.
“FX markets are generally risk-off today with the dollar higher, but the Chinese yuan is among the only currencies in emerging markets holding firm” according to The Chronicle Herald.
The US Dollar is trading at 6.46 against CNY this morning, falling -0.25% with a YTD return of -0.80%. The pair had an open rate at 6.47, down from the previous close at 6.48. USD/CNY will have a daily range between 6.46 and 6.47, the 52-week range is expected to move between 6.43 and 7.17.
USD has lost some strength against CNY falling from the 6.50 level at the beginning of the month and continuing to show bearish growth as the month has progressed. With President Biden’s transition to the White House completed, the market seems to be in favor of the USD as “the dollar rose 0.2%” which was the highest exchange rate seen since Jan 20th.
USD “has strengthened 1.6% in three weeks as US Treasury yields rose, after a 6% drop between September and January.” The dollar is anticipated to continue gaining strength in the coming weeks as political news begins to settle down.
By Surina Nath