- Analytics
- News and Tools
- Market News
- USD/CNH to trade in a narrower range of 6.35-6.50 for the remainder of the quarter – Credit Suisse
USD/CNH to trade in a narrower range of 6.35-6.50 for the remainder of the quarter – Credit Suisse
The People’s Bank of China (PBoC) hawkish surprise suggests a prioritization of CNY stability now that 10y CGB yields no longer offer a premium over 10y UST yields. Analysts at Credit Suisse now expect USD/CNH to trade in a 6.35-6.50 range.
Upper range of 6.35-6.55 looks unlikely in the short-term
“Despite the grim economic outlook, the PBoC surprised on the hawkish side on 15 April by declining to cut the MLF rate and cutting the RRR by only 25 bps (vs expectations of 50 bps). We think the hawkish surprise shows that the PBoC is prioritizing CNY stability now that onshore 10y CGB yields no longer offer a premium over 10y UST yields..”
“We now expect USD/CNH to trade in a range of 6.35-6.50 for the remainder of the quarter as US yields rise, with the pair eventually trading above 6.50 in Q3.”
“The upper range of our previous Q2 USD/CNH forecast of 6.35-6.55 looks unlikely in the short term while the PBoC suppresses FX volatility.”
© 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
