Barclays expect Chinese policymakers.....>

CHINA YUAN: Barclays expect Chinese policymakers to "tolerate additional

market-driven CNY depreciation over the coming quarters as U.S. tariffs are

imposed, economic activity continues to moderate, and downside growth risks

persist. Poor EM investor sentiment and higher USD returns are also likely to

support further CNY weakness versus the USD, and we now forecast 6.95 at year

end (6.60 previously). We do not think the reintroduction of the Counter

Cyclical Adjustment Factor indicates a desire to limit further CNY depreciation,

rather a preference for this to occur in an orderly way. We expect USDCNY to

remain around 6.95 over the forecast horizon, consistent with a stable CNY CFETS

NEER and representing c.10% depreciation since March-April 2018, more than

offsetting the effects of US tariffs implemented to date on the price of Chinese

exports for US consumers."