5 Jun 2015
USD/CNY: Comes with a neutral bias in 6.1900 - 6.2100 - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo-Mitsubishi UFJ, Ltd. explained that there is still not too much to drive a break out of the recent narrow ranges in USD/CNY.
Key Quotes:
"This week's prospective (and more realistic) path may be the narrowest we've ever forecast."
"As we're expecting gradual positive surprises in indicators (maybe industrial output and fixed asset investment this time) we would not be surprised if spot ends down modestly by, say, 20-30pips (remember the big trade surplus coming up). But neutrality remains."
"For this economy, we suspect we will eventually feel more reassured about recovery only if CPI inflation itself ticks up; but not yet."
Key Quotes:
"This week's prospective (and more realistic) path may be the narrowest we've ever forecast."
"As we're expecting gradual positive surprises in indicators (maybe industrial output and fixed asset investment this time) we would not be surprised if spot ends down modestly by, say, 20-30pips (remember the big trade surplus coming up). But neutrality remains."
"For this economy, we suspect we will eventually feel more reassured about recovery only if CPI inflation itself ticks up; but not yet."