11 Jun 2015
USD/CNY trading band unlikely to widen – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Flemming Nielsen does not expect the USD/CNY trading band to be any wider for the time being.
Key Quotes
“It is still our view that China will not allow CNY to depreciate substantially despite data suggesting that growth continued to slow in early 2015”.
“In our view, CNY remains well supported by an increasing trade balance surplus in the wake of a sharp decline in import prices and China’s relatively closed capital account that limits capital outflow”.
“China’s ambition to have CNY included in the SDR later in 2015 also suggest that China will behave like a responsible stakeholder ahead of the IMF decision this autumn”.
“We do not expect the daily trading band to be widened until after the IMF decision”.
“We still expect a moderate appreciation of CNY within the current trading band albeit a general stronger USD limits the appreciation potential in the short run”.
Key Quotes
“It is still our view that China will not allow CNY to depreciate substantially despite data suggesting that growth continued to slow in early 2015”.
“In our view, CNY remains well supported by an increasing trade balance surplus in the wake of a sharp decline in import prices and China’s relatively closed capital account that limits capital outflow”.
“China’s ambition to have CNY included in the SDR later in 2015 also suggest that China will behave like a responsible stakeholder ahead of the IMF decision this autumn”.
“We do not expect the daily trading band to be widened until after the IMF decision”.
“We still expect a moderate appreciation of CNY within the current trading band albeit a general stronger USD limits the appreciation potential in the short run”.