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ING: Setting A Soft Tone For The Region

CNY

ING write “the news from China remains quite pessimistic. The Evergrande headlines yesterday serve as a reminder that there are no quick fixes for the property sector and the measures announced by policymakers to support local equity markets, such as restrictions on short selling, are not proving effective. There is increasing talk of the People's Bank of China needing to cut interest rates further.”

  • “While local policymakers will be glad that USD/CNH has reversed from the 7.30/35 area - breaking a 'sell-China' mindset - they will not want the renminbi to rally too much either. This tends to suggest that USD/CNH can gravitate around the 7.20 area and that Asian FX will continue in its very sluggish start to 2024.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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