Market news
22.10.2019, 07:59

Yuan set to stay above 7 even if the US and China hammer out a trade deal - Nomura expert

The yuan will continue trading above 7-per-dollar even if the United States and China manage to ink a partial deal, expert say.

The Chinese currency, also known as the renminbi, has eased in recent months as trade tensions between Washington and Beijing intensified.

“The yuan will be stuck in a narrow range until we know for certain that Phase 1 of the trade deal is signed,” Stuart Oakley, global head of flow foreign exchange at Nomura, told CNBC.

“I’d estimate that range to be 0.50% either side of 7.0750 up until 16th Nov — with a slight bias to the downside,” he said, referring to next month’s Asia-Pacific Economic Cooperation meeting which will be attended by U.S. President Donald Trump and Chinese President Xi Jinping. The currency pair will likely head toward 7.00 if the two sides are able to sign an agreement in Chile, he added.

For the Chinese currency to strengthen to a level below 7-yuan-per-dollar again, the market will need to see signs that “the elimination of existing tariffs is being seriously discussed,” according to Oakley.

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location