Nomura Global FX Strategy expects RMB depreciation to remain a prominent theme for EM and Asia FX over the next few months, and are currently holding a long USD/CNH position in our portfolio.
The main rationale for this trade includes the risk of faster hikes from the US Fed, increased geopolitical tensions in the region and direct risks to China from President-elect Trump’s policy including naming China a currency manipulator, or worse, imposing tariffs on Chinese products
However, we note that policy actions since the start of the year have increased the potential volatility in this trade, warranting some caution.
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 securities. 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 Forex 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.