Allan von Mehren, Chief Analyst at Danske Bank, expects the Chinese Yuan to gather some traction to the 6.25 area in 12-month view. Key Quotes “We look for Chinese money market rates to ease further in 2018 following a big rise in 2017 as liquidity was tightened. M1 growth has fallen quite sharply due to the monetary policy and we expect the PBoC to take its foot a bit more off the brake. The PBoC has cut the Reserve Requirement Ratio to free up some liquidity recently. As US money market rates are set to rise, relative rates will move in favour of the USD”. “We expect the high correlation with EUR/USD to continue. As we have revised lower our 12M EUR/USD forecast to 1.25 (from 1.28), we also make a slight adjustment to the USD/CNY forecast. We now look for 6.25 in 12M (from 6.20)”. “This implies a downward adjustment to our EUR/CNY forecast as we now look for 7.81 in 12M (from 7.94), which is lower than the forward market of 7.93″. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US stocks hold weaker amid lingering US-China trade tensions FX Street 3 years Allan von Mehren, Chief Analyst at Danske Bank, expects the Chinese Yuan to gather some traction to the 6.25 area in 12-month view. Key Quotes "We look for Chinese money market rates to ease further in 2018 following a big rise in 2017 as liquidity was tightened. M1 growth has fallen quite sharply due to the monetary policy and we expect the PBoC to take its foot a bit more off the brake. The PBoC has cut the Reserve Requirement Ratio to free up some liquidity recently. As US money market rates are set to rise, relative rates will move… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
