11 Aug 2015
USD/CNY poised for further gains by year-end – BTMU
FXStreet (Edinburgh) - In the view of Lee Hardman, Currency Analyst at BTMU, the pair could climb further towards the end of 2015.
Key Quotes
“The new fixing mechanism should allow the renminbi to be more market driven although of course the Chinese authorities can still suppress the USD/CNY rate onshore”.
“The USD/CNY rate may now come under more upward pressure ahead of the first Fed rate hike than would previously have been the case prior to today’s change in the fix mechanism, and given our forecast for further broad-based US dollar strength”.
“Our analysts in Hong Kong have stated that they are likely to revise up modestly their forecasts for USD/CNY heading into year-end”.
“However, they remain comfortable with their view that the renminbi will resume its longer-term appreciation trend once the Fed has started to raise interest rates”.
“Speculation has heightened as well that the Chinese authorities will make further policy announcements such as widening the daily trading band”.
Key Quotes
“The new fixing mechanism should allow the renminbi to be more market driven although of course the Chinese authorities can still suppress the USD/CNY rate onshore”.
“The USD/CNY rate may now come under more upward pressure ahead of the first Fed rate hike than would previously have been the case prior to today’s change in the fix mechanism, and given our forecast for further broad-based US dollar strength”.
“Our analysts in Hong Kong have stated that they are likely to revise up modestly their forecasts for USD/CNY heading into year-end”.
“However, they remain comfortable with their view that the renminbi will resume its longer-term appreciation trend once the Fed has started to raise interest rates”.
“Speculation has heightened as well that the Chinese authorities will make further policy announcements such as widening the daily trading band”.