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On Thursday Morgan Stanley wrote "the....>

- Bonds & Currency News | Market News" >
CHINA YUAN: On Thursday Morgan Stanley wrote "the market is underestimating the
upcoming rebound in China. USD/CNY forwards are pricing for USD/CNY to settle at
CNY6.79 while consensus estimates of economists put the figure at CNY6.70;
however, we think both these figures underestimate the potential for the RMB
throughout this year. In our economists' revised forecast, we expect USD/CNY to
reach CNY6.55 by year-end 2019 due to our view that the upcoming China stimulus
can be more potent than the market currently expects. Our economists are
expecting January's broad credit figure to rebound on the back of stronger
corporate and front-loaded local government bond issuances. We saw the January
export and import figures for China greatly exceed market expectations (imports
y/y grew at -1.5% vs consensus of -10.2%) but we note this may partially have
been affected by CNY seasonality."
- Bonds & Currency News | Market News" >
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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