The latest Reuters survey of FX strategists showed on Wednesday that a majority of them see the Chinese Yuan breaching the key 7 per-dollar level within six months, in light of China slowdown fears.
Key Findings:
“The number of analysts predicting the Yuan will weaken to 7 per dollar or beyond at any time during the polling horizon increased in the latest poll from previous months and was the highest since a July 2017 survey.
a strong majority of analysts who answered an extra question said the Yuan would weaken to 7 per dollar within six months, despite a widely-held view the Chinese authorities will step in to defend it at that key level.
However, median estimates in the wider Jan. 2-8 poll of more than 70 foreign exchange strategists showed the Yuan will only weaken about 1.5 percent to 6.95 per dollar by end-June from about 6.85 on Tuesday. It is then forecast to end the year at 6.89 per dollar.”
Share
