USD/CNH: US data strength points to some limited upside – CIBC

Market news

13 November 2023

USD/CNH: US data strength points to some limited upside – CIBC

Upward momentum in USD/CNH past 7.35 has been effectively halted. Economists at CIBC Capital Markets analyze the pair’s outlook.

CNH stability to persist amid continued government intervention

We expect the authorities to continue intervening in both equity and currency markets after both neared two-year lows in October.

US data strength points to some limited USD/CNH upside – we forecast 7.34 by Q4 – but the PBoC has effectively drawn a line just below 7.40.

See: RMB to gain market share amid the global dedollarisation – ANZ

Pound Sterling finds cushion as surprisingly stagnant UK Q3 GDP, Employment data eyed

USD Index struggles for direction around 105.80

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