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17 Sep 2015
USD/CNY has a mixed outlook - BTMU
FXStreet (Guatemala) - Analysts at the Bank of Tokyo Mitsubishi UFJ explained the conditions surrounding USD/CNY.
Key Quotes:
"We think the stage management continues, pushing USD/CNY down by the week. The markets are so indecisive right now it makes you wonder why the Chinese bothered on 11 August?"
"The CNH intervention makes it more difficult to see but we still think capital is flowing out. The CNH/CNY spot spread is widening again (so beware intervention). Maybe more to the point is USD/HKD has been nearly always at the bottom of its trading band in recent days. We think the Basic Law would preclude PBOC intervening in USD/HKD. We think."
Key Quotes:
"We think the stage management continues, pushing USD/CNY down by the week. The markets are so indecisive right now it makes you wonder why the Chinese bothered on 11 August?"
"The CNH intervention makes it more difficult to see but we still think capital is flowing out. The CNH/CNY spot spread is widening again (so beware intervention). Maybe more to the point is USD/HKD has been nearly always at the bottom of its trading band in recent days. We think the Basic Law would preclude PBOC intervening in USD/HKD. We think."