ING writes "China surprised the market...>

CHINA YUAN: ING writes "China surprised the market by retaliating to the 10%

tariffs imposed by the US on 23 August, which US President Trump then retaliated

to immediately with more tariffs. The Yuan immediately weakened dragging EM FX

with it. We expect more moves like this from China in the coming months. We

believe that it is more likely that there is no progress from September trade

talks - if indeed they happen. The US may, as a result, impose more tariffs.

This alone will likely move the Yuan weaker. It is possible that China will

start to use its 'unreliable entity list' to include US companies so that they

can't do businesses with Chinese companies. That could move the Yuan even

weaker." Their USD/CNY forecasts are as follows:

- 1-Month: CNY7.1800

- 3-Months: CNY7.2000

- 6-Months: CNY7.2300

- 12- Months: CNY7.3000