Risks of near-term RMB depreciation are building - Nomura

Sandeep Kanihama FXStreet Contributor

Dollar outperformance continued this week, with particular attention on a further move higher in USD/CNH, notes the research team at Nomura.

Key Quotes

“With Chinese authorities seemingly allowing for more market determination/flexibility in setting the RMB exchange rate against a backdrop of worsening US-led trade protectionism, a further weakening of local macro conditions and an expansionary domestic monetary policy, our Asia FX strategy team believes that risks of near-term RMB depreciation are building and added to existing long USD/CNH positions.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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