All eyes are on Asia once again as the offshore yuan (CNH) holds steady amid falling February volumes industry-wide
Statistical reasoning behind the priority which a large number of FX firms is giving toward engendering large-scale business from within the much coveted Asia Pacific region continues to rear its head as the offshore Yuan (CNH) has become a vital instrument at Thomson Reuters, clarified by the company’s announcement of its FX trading volumes yesterday.
The USDCNH (US Dollar against Chinese offshore yuan) has become the second-most traded pair on Thomson Reuters Matching.
Speaking publicly on the matter in the company’s official release, Phil Weisberg, Global Head of Foreign Exchange at Thomson Reuters, said “Trading volumes on Thomson Reuters venues remained steady through February which was a slower month due to fewer trading days and Chinese New Year,”
“As with the rest of the market, we saw continued strong performance in CNH (offshore yuan trade) which became the second most traded pair by volume on our Matching platform” he concluded.
This latest development in the yuan’s continual elevation toward worldwide acceptance, combined with Hong Kong and Singapore’s rock solid financial markets economy is an important measure by which to consider the region as a future FX powerhouse, especially when bearing in mind that Singapore plays host to the largest banking sector FX corporations in Asia.
With an overall decline of volumes during across Thomson Reuters’ entire business, and FXall, the company’s buy side platform which it acquired last year for $625 million, having fallen from $137 billion in January to $113 billion in February, the relative stability generated by CNH activity serves to bolster the firm’s performance as well as instill further confidence in a region which is becoming the industrial and financial focus of the world.