The US dollar against the offshore yuan has just reached the 6.7600 mark, currently quoted at 6.7600 yuan, unchanged for the day; the US dollar against the onshore yuan is now at 6.7630 yuan, down 0.14% on the day.

Deutsche Bank points out that as central banks in the US, Europe, and Japan are tightening policy simultaneously, the market may still be underpricing the eventual terminal rates. With oil prices remaining high, inflation may spill over into core inflation and wages. Moreover, financial conditions have not tightened in tandem, which could weaken the effect of rate hikes. Citing the experience of 2022, Deutsche Bank notes that the market then expected a total of around 200 basis points of Fed rate hikes in the first year, but the final figure exceeded 400 basis points, illustrating that the market often underestimates the terminal rate.