CNY Paving the Way for the Trump-Xi Summit

USDCNY has broken below the 6.80 psychological level ahead of the Trump-Xi summit, with Barclays expecting near-term stability despite aggressive pushback from Chinese state banks against rapid appreciation.

Key Takeaways

• 1.USDCNY broke below 6.80, and stability is expected around the upcoming Trump-Xi meeting in Beijing.
• 2.Chinese authorities are using fixings and state-bank intervention to slow the pace of CNY appreciation to protect export competitiveness.
• 3.Strong exporter USD conversions (USD 179bn in Q1) are expected to normalize to approximately USD 30bn per month.

Table of Contents

• CNY paving the way for the Trump-Xi Summit
• USDCNY breaks below 6.80. Now what?
• China's state banks push back
• CNY fixings slow rather than stop appreciation
• Near term stability/firming of the CNY would help Asian currencies.
• Analyst(s) Certification(s)
• Important Disclosures

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial