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11 Jun 2014
USD/CNY year-end forecast at 6.14 - HSBC
FXStreet (Bali) - HSBC thinks it is still a little early to expect a significant recovery in the RMB.
Key Quotes
"It is still a little early to expect a significant recovery in the RMB, not least until importers have covered their purchasing needs."
"However, the PBoC's recent actions suggest that the sharp sell-off in the RMB (triggered by policies that curb hot money inflows and unwinding of heavy market positioning) has likely come to an end."
"This, and the recovery in trade balances support our year-end forecast for USD/CNY at 6.14."
Key Quotes
"It is still a little early to expect a significant recovery in the RMB, not least until importers have covered their purchasing needs."
"However, the PBoC's recent actions suggest that the sharp sell-off in the RMB (triggered by policies that curb hot money inflows and unwinding of heavy market positioning) has likely come to an end."
"This, and the recovery in trade balances support our year-end forecast for USD/CNY at 6.14."