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Morgan Stanley went short USD/CNH at.....>

CHINA YUAN: Morgan Stanley went short USD/CNH at the NY close on Thursday, with
a target of CNH6.9500 and a stop at CNH7.2100.
- MS reasons that "CNY rallied in the first two weeks of September on the back
of de-escalation of U.S./China trade tensions but ignored the news that China
exempted soybeans from tariffs last Friday. We believe that the market
underestimated the importance of this news and both private companies and SOEs
in China could step up soybean purchases, reducing the tension between the two
nations temporarily. We are short USD/CNH targeting CNH6.9500 but would look to
reassess the trade into mid-November should Presidents Trump and Xi meet at the
APEC Summit. The risks to the trade are hawkish Fed rhetoric or re-escalation of
trade tension."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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