Gold Price Rebounds as U.S.-Iran Tensions and Fed Minutes Keep Markets on Edge 
China Inflation Cools in June as Producer Prices Hit Four-Year High 
Oil Prices Rise as U.S.-Iran Conflict Fuels Strait of Hormuz Supply Fears 
Gold Prices Slip as Stronger Dollar, Fed Rate Outlook Weigh on Bullion 
Japanese Yen Rises as Pension Fund Plan and BOJ Rate Hike Bets Weigh on Dollar 
Japan Eyes Bigger GPIF Investment in Domestic Assets as BOJ Independence Concerns Grow 
Dollar Ends Week Higher as Yen Jumps on Japan Pension Fund Investment Plans 
US Stock Futures Steady as Oil Prices Ease, Iran Talks Boost Market Sentiment 
US Stock Futures Steady as US-Iran Tensions and Fed Inflation Concerns Weigh on Markets 
The yuan exchange rate is expected to stabilise in the coming sessions with the fixing-spot gap and onshore-offshore spot spread to narrow. The USD/CNH is likely to trade in the range of 6.70-6.90 afterwards.
The USD/CNY closed well below the fixing on Wednesday for a third consecutive session, while USD/CNH tumbled further amid surging CNH funding costs across the tenors. Overnight CNH HIBOR soared 15.73 percentage points to 21.08 percent yesterday from 5.35 percent on Monday, the highest level since January 6.
Over the remainder of the year, China is expected to manage to avert any intense market worries over the yuan depreciation before the 19th Party Congress in the autumn, avoid engineering the yuan weaker and refrain from competitive currency devaluation and preventing the yuan from appreciating excessively to drag down the nation's economic growth.
"We think a counter-cyclical factor (CCF) has been introduced to the pricing mechanism of USD/CNY fixing by the central bank. We expect USD/CNH to trade in the range of 6.70-6.90 afterwards," Scotiabank commented in its latest research report.
