China’s Foreign Reserves Data: What is coming your way? – ING

By FXStreet China’s March foreign reserves data is due today and the consensus forecast is $3.196 trillion, which would be a negligible $6.3 billion decline from February.

Key Quotes

“We credit the PBOC’s USDCNY fixing policy, which Governor Zhou characterizes as enhanced reference to a basket of currencies, and the tightening of exchange controls/macropru for slowing reserve outflows from the unsustainable $100 billion per month pace of November- January (see Figure). We think there are strong economic and political reasons for the PBOC to stay the course.

Based on this and ING’s house view that USD/Majors will range trade in 2016 we revised our yearend USDCNY forecast to 6.47 from 6.65 (latest 6.48, Bloomberg median 6.70, forward 6.62).”
For more information, read our latest forex news. …read more

Source:: FX Street