CNY: Weak data points to lower rates – Commerzbank
|This morning, China's National Bureau of Statistics released its monthly data report, which was generally uninspiring, Commerzbank’s FX Analyst Volkmar Baur notes.
China's weak economy argues for lower interest rates
“Although retail sales were slightly positive, the other data points remained weak. Investment in particular was much lower than most analysts had expected according to Bloomberg. In addition to the housing market, infrastructure investment seems to increasingly weigh on growth.”
“So, all in all it was not a good start for the Chinese economy in the third quarter. We expect an improvement in the interest rate differential between China and the US as a result of the interest rate cut cycle in the US to boost the CNY in the coming months.”
“However, the potential remains limited as China's weak economy also argues for lower interest rates.”
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.