#USDCNH @ 7.27084 : Q$ forecast range raised to 7.10-7.55 – Credit Suisse
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USD/CNH has reached the top end of Credit Suisse’s forecasted 7.00-7.35 trading range. Therefore, the Q4 USD/CNH target has been revised to 7.10-7.55.
“President Xi did not specifically mention FX policy during his Work Report speech, but continuity in economic policy points to further ‘flexibility’ on the USD/CNY exchange rate.”
“Tuesday’s USD/CNY fix (to 7.1668, an increase of 438 pips) ‘broke’ the previous USD/CNY fix range of 7.10-7.12 seen since 10 October, confirming that yuan weakness can continue.”
“We expect negative sentiment in China equities to continue spilling over into the yuan, and now raise our Q4 USD/CNH forecast range to 7.10-7.55.”
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