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3 Mar 2015
USD/CNY midpoint to continue to creep higher – OCBC
FXStreet (Barcelona) - Emmanuel Ng of OCBC Bank, explains that the slowdown concerns of the Chinese Economy, and higher broad dollar indices has kept the USD/CNY midpoint to continue to creep higher.
Key Quotes
“Regarding the renminbi, we reiterate the likelihood for the USD-CNY midpoint to continue to creep higher if the broad dollar indices continue to climb.”
“Apart from the slowing Chinese economy, we would expect the Chinese authorities to continue to attempt to temper the appreciation of the CNY’s NEER in the coming months. On this front, if slowdown concerns continue to circulate, note that a drift in the mid-point to 6.2000 would imply a 2% limit of 6.3240 at the extreme top end of the fluctuation band, an eventuality that cannot be discounted.”
Key Quotes
“Regarding the renminbi, we reiterate the likelihood for the USD-CNY midpoint to continue to creep higher if the broad dollar indices continue to climb.”
“Apart from the slowing Chinese economy, we would expect the Chinese authorities to continue to attempt to temper the appreciation of the CNY’s NEER in the coming months. On this front, if slowdown concerns continue to circulate, note that a drift in the mid-point to 6.2000 would imply a 2% limit of 6.3240 at the extreme top end of the fluctuation band, an eventuality that cannot be discounted.”