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USD/CNH extends its slow grind lower – ING

USD/CNH continues to edge lower, a trend that began even before broader US Dollar (USD) weakness, as exporter flows and possible portfolio inflows support the renminbi, ING's commodity experts Ewa Manthey and Warren Patterson note.

Beijing allows steady RMB strengthening

"We see USD/CNH continuing to grind lower. This had been happening even before a clear move lower in the dollar. We're not sure whether it relates to foreign portfolio inflows into China or just Chinese exporters finally offloading their export earnings. Yet local authorities have had USD/CNY fully under control this year and are clearly allowing this renminbi appreciation."

"Here, we think they might be favouring a stronger CNY to support domestic demand, as they shift away from their long-held export model. Our team sees USD/CNY heading down to the 6.90 area next year."

European Gas prices slide to 8-month low – ING

European natural Gas prices extended their decline, with TTF falling to its lowest level since April as unseasonably mild weather curbs demand, ING's commodity experts Ewa Manthey and Warren Patterson note.
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Italy HCOB Services PMI came in at 55, above expectations (54) in November

Italy HCOB Services PMI came in at 55, above expectations (54) in November
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