It was a day of subdued ranges across much of major FX. In summary the USD is a few points stronger pretty much across the board. Everyone’s favourite right now, EUR, was pegged back a little. As I post is dribbling just under 1.0900.

Data from Japan for February wholesale inflation showed flat m/m but a still solid 4% rise y/y. USD/JPY has had a quiet one, stuck around 148.00 for much of the session.

The US House of Representatives passed a bill to fund the government through until September. The bill now faces a vote in the Senate. 60 votes are required. Timing for the vote has not yet been scheduled. Government funding is set to run out on March 14.

Oil steadied somewhat despite the private inventory survey showing a significantly larger headline build than was expected. The official government data is due Wednesday morning out of the US.

China’s offshore yuan (CNH - see under the chart for more info if you need) hit its highest since mid-November last year. I've noted a number of times that China has not responded to Trump's massive 20% increase in tariffs by allowing the yuan to weaken. I've suggested its because they are holding that in reserve as a negotiating tactic. I might be wrong - comments welcome!

usdcnh 12 March 2025 2
  • CNY is the onshore yuan. Its permitted to trade plus or minus 2% from its daily reference rate.
  • CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
Source: Forex Live