In an overnight interview on Bloomberg Television, Goldman Sachs’ Zach Pandl, Co-Head of Global Foreign-Exchange and Emerging-Market Strategy in New York, expressed his thoughts on the US-China trade issue and his view on the Chinese yuan going forward.
Key Quotes:
Case to be long yuan is really about the prospect of a tariff rollback in the U.S.
If we do get confirmation of a rollback of some of the tariffs, we think that the yuan could have a relatively sharp but short-lived period of appreciation into the first quarter. it is one of our favorite FX trades.
U.S. may request more openness from China about its currency policy as part of a trade deal
That’s not really what’s driving the yuan at the moment, so we don’t think it’s a major issue for the trade talks.”
Share
