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13 Mar 2015
USD/CNY bullish bias – BTMU
FXStreet (Barcelona) - The Research Team at Bank of Tokyo-Mitsubishi UFJ, maintains a bullish bias on USD/CNY for the week ahead, noting that China REER may be surging again in March.
Key Quotes
“Fixes shifted higher, above forecasts throughout the week and still seem on track with 2014 patterns. Of course it was the Big Dollar Week, and disinflation elsewhere hasn't gone away (even if China's may have paused).”
“More efforts were made, however, to keep spot away from its weakside barrier during the NPC meeting period. With the NPC ending this Sunday, possibly this effort will fade.”
“It's possible China's REER may have stabilized in February but then is surging again in March because of the Big Dollar. As we have discussed, this suggests spot higher to temper REER strength.”
“USD/CNY – Bullish Bias – (6.2500-6.2850)”
Key Quotes
“Fixes shifted higher, above forecasts throughout the week and still seem on track with 2014 patterns. Of course it was the Big Dollar Week, and disinflation elsewhere hasn't gone away (even if China's may have paused).”
“More efforts were made, however, to keep spot away from its weakside barrier during the NPC meeting period. With the NPC ending this Sunday, possibly this effort will fade.”
“It's possible China's REER may have stabilized in February but then is surging again in March because of the Big Dollar. As we have discussed, this suggests spot higher to temper REER strength.”
“USD/CNY – Bullish Bias – (6.2500-6.2850)”