Onshore yuan looks set for its first weekly gain in three weeks

<p>This week we had a 50 basis point cut to China's Reserve Requirement Ratio (RRR), which appears to have lent the yuan enough support to break its three-week losing streak.</p><p>Barclays comments (via Reuters report):</p><ul><li>"China's support for yuan assets and growth has intensified,
but one-time impulses have struggled to alter fundamental
dynamics," </li><li>"A 50-basis-point reserve requirement ratio (RRR) cut with
the medium-term lending facility (MLF) rate on hold suggests a
preference for liquidity management"</li></ul><p>Earlier, from ANZ:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-government-stimulus-in-china-are-merely-a-painkiller-not-a-cure-for-the-economy-20240126/" target="_blank" rel="follow" data-article-link="true">PBoC, government stimulus in China are merely a "painkiller, not a cure" for the economy</a></li></ul><p>And, earlier still, the PBoC continued with its efforts, underway for many months now, to support the currency and the reference rate setting every day:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-reference-rate-for-today-at-71074-vs-estimate-at-71733-20240126/" target="_blank" rel="follow" data-article-link="true">PBOC sets USD/ CNY reference rate for today at 7.1074 (vs. estimate at 7.1733)</a></li></ul><p>Onshore yuan update:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.