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Analysts at Morgan Stanley expect the Chinese Yuan to edge higher vs. the US dollar by this year-end amid an upturn in the Chinese economic recovery, as Beijing’s stimulus efforts help spur the economy.

Key Quotes:

“Market is underestimating the upcoming rebound in China.

We expect USDCNY to reach 6.55 by year-end 2019.

Due to our view that the upcoming China stimulus can be more potent than the market currently expects.

Our economists are expecting January’s broad credit figure to rebound on the back of stronger corporate and front-loaded local government bond issuances.”