CNY: Minor Adjustment, Not Major Revaluation

Short-Term Outlook We see no change in the official Chinese yuan peg in H110 as the Chinese authorities concentrate on maintaining expansionary policies to support the ongoing economic recovery, inflation remains relatively benign, and exports remain below par. Regarding the CNY 1-Year non-deliverable forward, we could see further strength from the current level of CNY6.6390/US$ (implying 2.8% gains over the next 12 months) as expectations of a revaluation mount.

To read the full article, please choose one of the following options: