25 Mar 2014
USD/CNY fix to be higher - Nomura
FXStreet (Bali) - According to a survey conducted by Nomura, 56% of respondents expect the USD/CNY fix to be higher in 2014 as a whole.
Key Quotes
"The Asia and NA hedge fund community and European banks mostly expecting more than 2% depreciation. The main rationale for this was continued PBoC FX intervention, but other common rationales included the weak economy and credit concerns."
"The 44% of those surveyed that believe the USD/CNY fix will be lower in 2014 were mainly Asia banks, and European and US hedge funds, with around 1% appreciation being the major expectation."
"51% of those surveyed expected a limited impact on Asia FX from RMB depreciation, with 28% seeing RMB weakness as temporary. The remaining 23% judged that recent RMB weakness has not been significant enough. 49% believe Asia FX is about to become more sensitive to RMB weakness, with this expectation the highest for the European hedge funds."
Key Quotes
"The Asia and NA hedge fund community and European banks mostly expecting more than 2% depreciation. The main rationale for this was continued PBoC FX intervention, but other common rationales included the weak economy and credit concerns."
"The 44% of those surveyed that believe the USD/CNY fix will be lower in 2014 were mainly Asia banks, and European and US hedge funds, with around 1% appreciation being the major expectation."
"51% of those surveyed expected a limited impact on Asia FX from RMB depreciation, with 28% seeing RMB weakness as temporary. The remaining 23% judged that recent RMB weakness has not been significant enough. 49% believe Asia FX is about to become more sensitive to RMB weakness, with this expectation the highest for the European hedge funds."