Dollar-Yuan Surpasses Dollar-HKD as Hong Kong's Most-Traded Pair

The US dollar-yuan currency pair has become Hong Kong's most-traded currency pair for the first time, according to recent data. This shift in trading activity occurred despite a July US CPI report that landed almost precisely on expectations. The report showed headline CPI rising 0.1% month-on-month and core CPI up 0.2%, which led to Treasury yields falling across the curve.

However, the US dollar weakened initially but is now retracing higher. Despite this, analysts suggest further losses could await as the year progresses, with a possible significant high in the week of June 22 marking the completion of a double top and bearish engulfing week around 100.50.