- Analytics
- News and Tools
- Market News
- USD/CNH: A weaker renminbi in service of the economy – TDS
USD/CNH: A weaker renminbi in service of the economy – TDS
FXStreet reports that strategists at TD Securities go long on USD/CNH on a deterioration in US-China relations, as well as detected changes in the USD/CNY fixing beta.
“The proximity to recent political events suggests to us that Chinese policymakers will no longer subjugate renminbi policy to maintaining goodwill in US-China trade relations. We instead see policymakers prioritizing FX adjustment to the Covid-19 global trade shock and assistance in easing monetary conditions.”
“We do not think that there will be an intentional outright politicization of the renminbi, which we would characterize by a substantial (10%-plus) idiosyncratic depreciation against the USD.”
“We go long 12mth USD/CNH forward in our model portfolio at 7.2477 (7.1490 spot reference). Spot take profit and stop-loss references are 7.5060 and 6.9700 respectively. Current indicative 12mth spot forward take profit and stop loss levels are 7.6100 and 7.0665 respectively.”
© 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
