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Abstract:Peoples Bank of China (PBOC) Deputy Governor Liu Guoqiang said in a statement on Tuesday, the central bank “will keep yuan exchange rate basically stable.”
Additional quotes
“Will maintain various policy tools to keep liquidity reasonably ample.”
“Will step up cross-cyclical policy adjustments in 2022.”
“Yuan exchange rate may deviate from equilibrium in near-term, but will correct over long-term.”
Another PBOC official was reported as saying that “property sales and financing steadily returning to normal.”
Market reaction
USD/CNY was last seen trading at 6.3509, up 0.06% on the day.
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Wednesday's major data releases and macroeconomic events are expected to cause volatility to increase after another day of erratic trading in the financial markets. The Spring Budget for the UK will be released, and January Retail Sales figures for January will be made available by Eurostat. ADP Employment Change for February and January JOLTS Job Openings will be discussed later in the session on the US economic docket.
Major currency pairings are still trading in familiar ranges early on Tuesday after the erratic trading on Monday. The US economic docket for the American session will include the factory orders data for January and the ISM Services PMI survey for February. Final updates to the February PMI for the US, Germany, the UK, and the EU will also be released by S&P.