- Analytics
- News and Tools
- Market News
- USD/CNY: Yuan to weaken into year-end as central bank policies diverge – MUFG
USD/CNY: Yuan to weaken into year-end as central bank policies diverge – MUFG
FXStreet reports that economists at MUFG Bank expect the USD/CNY pair to enjoy upside momentum on divergent monetary policy between China and US.
“The trade report revealed that both export and import growth came in weaker than expected. Softer than expected external demand becomes more of a concern at a time when market participants are fearful that domestic demand is already slowing and will take another hit from further COVID-related disruption in the near-term from the ongoing spread of the Delta variant.”
“A further loss of growth momentum will keep pressure on policymakers in China to provide more support. Our China analyst expects a further RRR cut. Headline inflation remained subdued at 1.0% in July leaving room for looser policy to support growth although producer price pressures were more elevated at 9.0%. Overall, we continue to expect the renminbi to weaken modestly against the US dollar heading into year-end as policies diverge between the Fed and PBoC.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
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.
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.
Bank transfers
