PBOC conducts CNY 5 billion of CBS operation Friday

Dhwani Mehta FXStreet

According to a CAN editor, China's central bank, the People’s Bank of China (PBOC) said it will start conducting 5-billion-yuan worth of central bank bills swap (CBS) this Friday.

This is the second CBS operation to improve the liquidity of perpetual bonds issued by commercial banks, he added.

Meanwhile, the PBOC kept a neutral position in Open Market Operations (OMO) while skipped reverse repos today.

Mainland China's total number of coronavirus deaths reaches 2,788 as of end-Feb 27

Market reaction

The Asian equities are tracking the Wall Street meltdown overnight, with Chinese stocks opening weaker around 2% and now extending the early losses, as risk-off remains at full steam amid coronavirus risks led global growth concern.

USD/JPY meanders near a three-week low of 109.33 while oil prices remain heavy around mid-46s.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD flirts with multi-week lows near 1.3280

GBP/USD trades mildly on the defensive on Wednesday, challenging the area of multi-week troughs around 1.3280. Indeed, Cable struggles to gain traction as the Greenback remains resilient ahead of the Fed gathering later in the day. Moving forward, the British Pound should remain under the microscope in light of the BoE meeting on Thursday.

EUR/USD stays offered below 1.1400 pre-Fed

EUR/USD trades in a narrow range below 1.1400 on Wednesday. The pair’s slight decline comes as the US Dollar benefits from risk aversion amid the deepening crisis in the Middle East. In the meantime, investors remain exclusively focused on the imminent FOMC event and the press conference by Chair Warsh.

Gold: The $4,000 mark holds the downside ahead of the Fed

Gold remains on the back foot on Wednesday, navigating the area just above the psychological $4,000 mark per troy ounce amid the US Dollar’s marginal advance. In the meantime, escalating tensions in the US-Iran conflict weigh on the precious metal, while investors await the FOMC event later in the day.

Bitcoin slips below support, Ethereum and XRP flash bearish signals

Bitcoin, Ethereum and Ripple remain under pressure on Wednesday after a mild correction earlier this week. BTC slips below a key support zone, and ETH is testing a key resistance zone. Meanwhile, XRP is drifting toward the psychologically important $1.00 support level.

Federal Reserve set to hold interest rates steady, yet a hike can’t be ruled out

The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday, another pivotal meeting for markets to gauge the stance of policymakers as they assess how rising crude Oil prices could impact the inflation outlook.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.