USD/CNY to trade lower but Q3 forecast revised higher to 6.86 – CIBC USDCNY Banks
The past month has been a challenging one for both the onshore/offshore Renminbi. Economists at CIBC Capital Markets have revised their Q3While there is some concern with the degree of debt held at a local government level, there’s still some room for authorities to provide stimulus going forward. Indeed, the risks are becoming skewed towards a cut to the RRR in the coming months which should serve to spur activity via credit channels in the quarters ahead.
Taken with our medium-term expectation of general USD weakness, we still expect the USD/CNY profile to be lower, albeit with a Q3 forecast revised higher now.Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
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