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16 May 2013
Forex Flash: USD/CNY has a neutral bias ahead – BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts feel that USD/CNY has a neutral bias ahead and is set to range between 6.1350 and 6.1800.
They begin by commenting that the PBOC/SAFE's attempt to move spot off its strong side through regulation has by and large not worked yet and the response to that is to push the fix higher again to force spot back closer to desired levels. They write, “We are still expecting selling flows to predominate in the coming week, but the enthusiasm for USD may leave spot trading in a more neutral range than recent weeks. April data showed more of the same for China's moderate recovery.” They feel that while market fashion may have shifted toward more pessimism, they don't think they see anything in April's figures that would suggest the 2Q13 pace of growth is all that different from the first quarter.
They begin by commenting that the PBOC/SAFE's attempt to move spot off its strong side through regulation has by and large not worked yet and the response to that is to push the fix higher again to force spot back closer to desired levels. They write, “We are still expecting selling flows to predominate in the coming week, but the enthusiasm for USD may leave spot trading in a more neutral range than recent weeks. April data showed more of the same for China's moderate recovery.” They feel that while market fashion may have shifted toward more pessimism, they don't think they see anything in April's figures that would suggest the 2Q13 pace of growth is all that different from the first quarter.