USD/CNY: bullish bias – (6.8750-7.0000) - BTMU

Analysts at Bank of Tokyo mitsubish offered an outlook for USD/CNY.

Key Quotes:

"When PBOC resumed its USD/CNY march higher after Golden Week, we doubt it imagined we'd be close to 7 by now."

"This is testament to greater global trading of RMB.

Despite shoving the Big Four into Shanghai, Hong Kong and London, Chinese authorities are discovering they can no longer control their currency as they desire and as it once was."

"This strikes us as a pregnant, risky moment, with RMB at some risk of a spec attack. Already pre-#Trump, market chatter was of pre-positioning for the New Year reload of FX quotas (another US$50k per person per year). The spirited move up post-#Trump must be, we think, encouraging even more capital outflows, from at least the corporates. Markets feel like they are loading up to test 7 (though our bias was incorrect last week)? We don't think it will break in the week ahead but even if not, most will assume it's only a matter of time."