USD/CNY likely to remain range-bound for now, says Commerzbank

The USD/CNY currency pair is expected to remain range trading for now, given the fact that “safe havens” JPY and CHF are no longer trading at the extreme levels seen last night but USD/JPY and EUR/CHF have not really recovered either - a fact that is creating some difficulties, according to the latest research report from Commerzbank.

Larry Kudlow, economic advisor to the White House, told reporters that the Phase One deal is down to the "short strokes", which has somewhat lifted up the market sentiment. However, he also said that it is not done yet.

"To be blunt, such rhetoric is more or less the same as Steven Mnuchin said months ago that a deal was "99 percent done". Nobody can't take it very seriously unless we can do a proper assessment on trade documents after the deal is really sighed," the report further commented.

However, Kudlow’s comments were good for risk sentiment on the market. Currencies such as ZAR, TRY, MXN were able to recover from their previous weakness, Commerzbank added.