#USDCNY @ 6.98082 could rise towards 7.20 or beyond in the coming months – Commerzbank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
USD/CNY trades slightly below the 7 level. In the view of economists at Commerzbank, the pair could surge higher towards 7.20 and even beyond.
“Producer price once again fell in November by 1.3% YoY while consumer price inflation moderated further to just 1.6% YoY.”
“Muted inflation provides the PBoC room for further monetary easing, but we think they will stick to using quantitative tools instead of interest rate cuts.”
“The recent strengthening of CNY due to improved sentiment on reopening optimism provides some room for rate cuts. However, USD/CNY could surge beyond the 7 mark when markets realize the economic reality is not as rosy, and it could rise towards 7.20 or beyond in the coming months when the reopening process gets bumpy.”
[/s2If]
Join Our Telegram Group
