Chinese GDP would show lower figures next week - BTMU

FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, sees the economic activity in China slowing down during the first quarter.

Key Quotes

"China remains important in that view too and we also expect no major deterioration in the outlook in China. Today, the CPI report was in line with market expectations with the annual rate jumping from 2.0% to 2.4% in March."

"The key data though comes next week with the GDP report for the first quarter expected to show a slowdown in real GDP annual growth from 7.7% to 7.3%. PBOC Governor Zhou Xiaochuan today stated that there was no need for any major policy adjustments in China given that growth was within normal ranges.

"Still, a weaker than expected GDP data next week would likely lead the market to speculate on additional stimulus measures by the authorities."

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