30 Apr 2015
USD/CNY: neutral between 6.1900-6.2200 - BTMU
FXStreet (Barcelona) - Analysts at the Bank of Tokyo-Mitsubishi UFJ, Ltd offered a neutral outlook and insight in to USD/CNY.
Key Quotes:
"While we and China will enjoy a much-welcomed Labor Day off tomorrow, we'll start next week fairly intent on the fix, which as some of you know has come in below daily model levels for several days. Usually in recent months whenever the fix makes a big move down (the April move down was the largest in two years), the next month's movement is far more muted even if in the same direction."
"But a second straight month of strong down fixings would probably signal the onset of the return of renminbi appreciation that we had been expecting for mid-2015. We stay neutral but think another big trade surplus for April (we think March's puny surfeit might have been a quirk in timing) provides fundamental support for the currency."
Key Quotes:
"While we and China will enjoy a much-welcomed Labor Day off tomorrow, we'll start next week fairly intent on the fix, which as some of you know has come in below daily model levels for several days. Usually in recent months whenever the fix makes a big move down (the April move down was the largest in two years), the next month's movement is far more muted even if in the same direction."
"But a second straight month of strong down fixings would probably signal the onset of the return of renminbi appreciation that we had been expecting for mid-2015. We stay neutral but think another big trade surplus for April (we think March's puny surfeit might have been a quirk in timing) provides fundamental support for the currency."