- Analytics
- News and Tools
- Market News
- Yuan to strengthen against the USD when growth optimism returns – HSBC
Yuan to strengthen against the USD when growth optimism returns – HSBC
USD/CNY broke above the 6.90 handle. Economists at HSBC expect the Yuan to strengthen against the Dollar when risk appetite improves amid strong data and pro-growth measures.
Awaiting new catalysts for growth optimism
“Although geopolitical tensions may not dissipate any time soon, we think the start of the National People's Congress (NPC) on 5 March 2023, together with upcoming economic data releases (such as China’s official PMIs for February on 1 March, trade data on 7 March, inflation data on 9 March, and a series of activity data from retail sales, industrial production to urban fixed asset investment in mid-March), could ensure growth optimism returns, which should help shore up the CNY.”
“High-frequency data in February point to a continued recovery in intra-city traffic and industrial production. Home prices in big cities have also shown signs of a rebound. For the upcoming NPC, we expect the government to announce a GDP growth target of ‘above 5%’ and a larger budget deficit of 3.2% (from 2.8% in 2022). This should reassure investors that a pro-growth mind-set will remain at the fore, probably supporting the Yuan.”
© 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
