CNY: Calm even with disappointing economic data - ING
|According to Iris Pang, economist at ING, Chinese yuan is more of a political tool in the trade war than an economic tool, which is confirmed with today's disappointing set of Chinese data.
Key Quotes
“Even though the data slowed unexpectedly, the USD/CNY fell slightly. In other words, the yuan has appreciated from yesterday's 6.8758 to the spot of 6.8726 (12:06 Hong Kong Time). The slight yuan appreciation is probably coming from the US's more optimistic tone on the trade negotiations.”
“We believe that both USD/CNY and USD/CNH will continue to move in tandem with sentiment on the trade war. If China and the US meet in the forthcoming G20 meeting in June then the yuan should appreciate back to the 6.75 level. Ahead of that, however, expect volatility to be high.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.