The Renminbi Is Short Or Coming Back.

The Central Bank of China has made good fortune this year, taking advantage of the weakness of the US dollar to reduce the RMB exchange rate.

Since the beginning of the year,

The exchange rate still looks relatively stable, while the other currencies, such as the euro and yen, have declined significantly.

In April 29th, the RMB index of China foreign exchange trading center was only 97.12, down 5.6% from 102.93 at the end of 11 last year.

However, Citigroup research team issued a warning today: "if the RMB nominal effective exchange rate continues to be weak, once the US dollar is stronger, the RMB bears will come back."

Overnight, the US dollar index dropped eight to 0.3%, to 92.94.

Will the central bank lower the central parity of RMB and return to bear market?

However, the Central Bank of China again lowered its currency.

The middle price fell 0.59% to 6.4963 against the dollar, the biggest decline since last August.

Therefore, tomorrow's RMB exchange rate should be paid close attention to.

If China

The process of deciding to depreciate the renminbi can not be accomplished overnight, otherwise the short term will go into large numbers and the RMB exchange rate will be sharply derogated.

Since the beginning of the year, the Powershares index fund has fallen by 6.1%, and the WisdomTree yuan fund has risen by 2.8%.

During the Asian session, the US dollar continued to strengthen, the Japanese yen fell 0.28% to 106.90 yen against the US dollar, the Han Yuandui dollar fell by 1.26%, and Malaysia ringgit withdrew 1.33% against the dollar.

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According to the price push of federal funds rate futures, traders now think that they will only raise interest rates 1 times this year, in December.

The possibility of raising interest rates in June dropped from 21.6% before the Fed's April interest conference last week to 12%.

Last week, the US Federal Reserve held its interest rate unchanged in April. In the statement, it deleted the description of global risks. It also called "the growth of economic activity seems to have slowed down".

So this is also known by market participants as "let the hawks and pigeons send their own needs".

Daniel Briesemann, an analyst at Commerzbank, said: "many market participants believe that monetary policy will continue to be relaxed for some time, while US interest rates will remain low for a longer period of time." Blitheman said.

During the latest statistical period, the US dollar short positions monitored by the US Commodity Futures Trading Commission (CFTC) jumped to more than three years high.

By the week of April 26th, the US dollar clearspace value rose to $4 billion 190 million from $1 billion 850 million a week ago.

Investors have held dollar clearance for second weeks in a row, and the highest value since February 2013.