Pound Sterling to Chinese Yuan (GBP/CNY) Exchange Rate Trending in Narrow Range as PBoC Raises Yuan After Three Day Devaluation
The Pound Sterling to Chinese Yuan (GBP/CNY) exchange rate has fallen since yesterday, and is now trending in a narrow range.
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Chinese Yuan (CNY) Rises in Value as PBoC Halts Further Deprecation Measures
The People’s Bank of China (PBoC) has today halted the downtrend of the Chinese Yuan (CNY) that started on Tuesday. Rather than subject the Yuan to a forth delay of devaluation, the PBoC has said ‘enough is enough’ and raised the Yuan by 0.05% this morning. Although such a raise was not large enough to trigger a reversal in the GBP/CNY exchange rate, it appears to indicate that a gradual rise in performance is impending for the Yuan. Yesterday, PBoC Assistant Governor Zhang Xiaohui said that ‘Currently there is no basis for the Renminbi exchange rate to continue to depreciate’.
Despite this drop in the Pound’s (GBP) performance, Sterling stands to gain later on, as the UK June monthly and yearly Construction Output figures are in, and both results have been forecast for growth.
The Pound Sterling to Chinese Yuan (GBP/CNY) exchange rate has risen for the third day in a row as the People’s Bank of China (PBoC) continued with its plan to devalue the Yuan (CNY).
Pound Sterling to Chinese Yuan Exchange Rate News: GBP/CNY Rises as PBOC Decision Continues to Harm Yuan’s (CNY) Performance
The Pound Sterling (GBP) has risen against the Chinese Yuan (GBP/CNY) by 0.2% today as the Yuan (CNY) faces a third consecutive day of being devalued by the PBoC. These gains for the Pound have been amplified by a recovery from yesterday’s crushing news that -63K UK jobs were lost in the three months to the end of June. The figure initially sent the Pound into a slump against its competitors, but Sterling has since rallied ahead of encouraging UK data due for release tomorrow.
The Pound Sterling has gained by 0.6% against the Norwegian Krone (GBP/NOK), the Indian Rupee (GBP/INR) and the New Zealand Dollar (GBP/NZD) today and has exceeded these rises with a 1.4% advance against the Turkish Lira (GBP/TRY). Elsewhere, the Pound has fallen by -0.3% against the Israeli New Shekel (GBP/ILS) and declined by a greater -0.9% against the Swedish Krona (GBP/SEK).
Chinese Yuan to Pound Sterling (CNY/GBP) Exchange Rate remains Unfavourable as PBoC Hints of End to further Yuan (CNY) Drops
The Chinese Yuan (CNY) has fallen to its lowest value in almost a year this week, although statements from the PBoC have gone some way to reduce the chance of any future troughs resulting from their decisions. PBoC Assistant Governor Zhang Xiaohui said in a statement today that the Yuan’s adjustment is ‘basically already completed’, an assertion that coincided with a change in the daily devaluation from -1.9% (Monday) to -1.6% (Wednesday) to -1.1% today. PBOC Chief Economist Ma Jun said that these forced drops were ‘within a controllable range’.
The Chinese Yuan fell to 0.0993 against the Pound Sterling today (CNY/GBP), and plummeted to similar lows of 0.1550 against the US Dollar (CNY/USD) and 0.1392 against the Euro (CNY/EUR).
Pound Sterling to Chinese Yuan Exchange Rate Forecast: Fourth Devaluation may Complete PBoC’s Goal, GBP/CNY to Rise Before then
The Pound (GBP) is likely to continue gaining against the Chinese Yuan (GBP/CNY) tomorrow as while the Chinese annual Foreign Direct Investment figure for July is forecast to show a 5% increase, a fourth Yuan (CNY) drop by the PBoC (while likely to be below -1%), will still impede any gains that the Yuan can make.
More definitely, the UK annual Construction Output figure for June is due and forecasts have been for 3.3% growth in this industry which if accurate, will strengthen the Pound considerably.
Current GBP, CNY Exchange Rates
The Pound Sterling to Chinese Yuan (GBP/CNY) exchange rate was trending in the region of 9.9811 and the Chinese Yuan to Pound Sterling (CNY/GBP) exchange rate was trending in the region of 0.1001 today.