Yuan's gain may slow as fundamentals call for some calms

Posted by Fullerton Markets on Jun 2, 2021 12:46:00 PM

The pace of Yuan's gains is suggested to slow down in the coming months 📉

In his latest CGTN report, Jimmy Zhu, our Chief Strategist, shares key insights which include:

✅ Yuan rallied around 3 percent in Q1 as China's economy has been showing persistent recovery after the pandemic.

✅ The nation’s financial institutions will need to hold 7% of their foreign exchange in reserve, from June 15, to reduce the supply of the dollar, which will impact the yuan negatively.

✅ The 10-year bond yield spread between U.S-China narrowed when the USD/CNY exchange rate stood around 6.95, limiting the Yuan's upside.

✅ China's new export orders index for the month of May fell below 50, indicating that exporters' revenues may be badly hurt. Read the full report

Read the full report!




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