MUFG – Japan’s largest bank – expects the USD/CHH pair to rise above 7.0 0 in the fourth quarter of this year.
Key points
The enforcement mechanism undid the US-China trade deal and adding Huawei into the mix will only complicate matters.
Trade stalemate is stretching out Yuan depreciation.
China’s collective leadership is not willing to do business on Trump’s terms; they have partially unleashed nationalism.
We think growth and credit drivers of RMB remain largely as before, but interest differentials are more yuan supportive.
Share
