PBOC keeps one-year MLF rate unchanged at 2.75%

Anil Panchal FXStreet

After announcing the USD/CNY fix, the Chinese central bank, namely the People's Bank of China (PBOC) also performed its monthly duty of announcing the Medium-term Lending Facility (MLF) rates. That said, the PBOC's MLF for one-year left unchanged at 2.75%, per the latest update.

Also read: PBOC sets USD/CNY reference rate at 6.9654 vs. 6.9481 previous

USD/CNY grinds higher

Following the PBOC announcements, USD/CNY renews a two-month high at 6.9583 while extending the six-day uptrend by the press time.

About PBOC MLF rate

The PBOC's Medium-term Lending Facility (MLF) rate is a benchmark interest rate that is typically higher than the benchmark lending rate and one that banks in China can use to borrow funds from the central bank for a period of 6 months to 1 year. Markets often gauge from the MLF decision as to what changes may or may not be made to the monthly Loan Prime Rate (LPR) later in the month.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

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.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.