Global Themes

Chinese yuan jumps to four-month highs as USDCNH break lower

The Chinese yuan surged higher after the key USDCNH pair fell below major technical support levels.

The USDCNH fell after trading new lows over the last week.

Bond yields in focus

Otherwise, bond yields around the world surged higher.

Markets have become increasingly focused on the greater likelihood of central bank rate hikes with the Reserve Bank of New Zealand likely to lead the charge after Monday’s stronger NZ inflation reading.

The NZ dollar and British pound were the strongest with bond yields in those countries also jumping higher this week.

Inflation key

Inflation and central bank moves remain closely watched this week.

Today, inflation readings from the UK and Canada will be key.

Later in the week, growth numbers move into focus, with the global PMI due from major economies like Japan, Germany and the US.