China's Yuan drops to lowest since December 28

USD/CNY rises to 6.5552 - the highest level since December 28.
The Chinese currency is losing ground as the People's Bank of China (PBOC) cleared the way to inject US $100 billion.

Omkar Godbole FXStreet Contributor

The USD/CNY pair rose to 6.5552 on Tuesday - the highest level since December 28, possibly due to PBOC's liquidity injection.

The central bank on Sunday announced it would cut the amount of cash that some banks need to hold in reserve – known as the reserve requirement ratio. The move is seen infusing US $100 billion to help soften the blow from a trade battle with the US.

Further, the PBOC did not raise rates following US Fed's 25 basis point rate hike and the resulting widening of the rate differential could be playing a role in pushing CNY lower.

USD/CNY Technical Levels

Resistance: 6.5590 (Dec. 27 high), 6.57 (Oct 11 low), 6.5725 (Nov. 23 low).

Support: 6.5354 (Jan 10 high), 6.4749 (Jan. 8 low), 6.4355 (September 8 low).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD holds steady above 1.1850 in quiet session

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day holiday.

GBP/USD flat lines near 1.3650 ahead of UK and US data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.3650 on Monday. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important data releases from the UK and the US.

Gold corrects lower, tries to stabilize above $5,000

Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.