USD/CNY: USD/CNG devaluing too far – BTMU

By FXStreet FXStreet (Guatemala) – Analysts at Bank of Tokyo, Mitsubishi explained that USD/CNH deviated a bit too far above USD/CNY.

Key Quotes:

“…Thereby implying capital outflows – so down came Big Brother’s hammer, offshore in Hong Kong and London this time.”

“Good to see the yuan so freely usable.”

“At the end of the Fifth Plenum, more intervention.”

“Just as well, if the renminbi’s a completely political currency, that’d suit China just fine, because the upcoming SDR decision is a political and not a technocratic one.”

“Manufacturing PMIs are tipped to show recovery in October, which we can believe for real estate.”
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Source:: FX Street