USD/CNY: In a tight range 7.10-7.35 for most of next year – TDS

Market news

17 November 2023

USD/CNY: In a tight range 7.10-7.35 for most of next year – TDS

The Yuan has taken a beating and is one of the underperforming Asia pairs against the USD. Economists at TD Securities analyze USD/CNY outlook.

USD/CNY at 7.35 marks the line in the sand

The PBoC's mantra now on the Yuan is ‘watch the pace, not the level’ but we suspect USD/CNY at 7.35 marks the line in the sand.

Structurally, however, we think long-term fair value for USD/CNY has shifted >7 and we see USD/CNY in a tight range of 7.10-7.35 for most of next year, with authorities likely having a clear preference for a weaker CNY to drive export growth.

China FDI - Foreign Direct Investment (YTD) (YoY) declined to -9.4% in October from previous -8.4%

USD/CHF Price Analysis: Looks to approach 0.8850 near monthly lows

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.