FXStreet reports that analysts at CIBC anticipate some near-term consolidation for CNY and CNH and have revised forecasts for more modest appreciation accordingly.
“Changing rate expectations have the potential to narrow yield differential away from CNH favour, though there is still some way to go (10yr bond China 3.06 vs US 1.34). The Long-term relationship of USD/CNH to the spread between 10-year yields is near to equilibrium at present levels.”
“China warnings of one-sided moves below 6.40, and ongoing efforts to use the occasion of strong growth this year to rein in levels of domestic leverage levels, have counted against forecasting standout CNH outperformance. Still, long-term GDP divergence and outperformance against other major economies continued strong demand for China assets, including for bonds, which helps to counter a slower pace of domestic credit expansion, instructs further medium-term CNH appreciation.”
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
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 firstname.lastname@example.org.