CNY: Still bearish? - Rabobank
|CNY has surprised many in H1 2017 with its strength vs. USD but analysts at Rabobank still remain bearish for a variety of reasons which primarily includes the high debt issues of the economy.
Key Quotes
“We’ve been here before with failed CNY rallies; China’s debt issue is still there to worry about; so are growing problems in the financial sector; and so is the backdrop of US rate hikes and President Trump.”
“Just look at China’s inverted sovereign yield curve, or the negative spread between Chinese banks 1-year lending rates and 1-year SHIBOR and try argue that the CNY is ‘strong and stable’ at current levels.”
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.