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Scotiabank note that "USDCNY onshore.....>

CHINA YUAN
CHINA YUAN: Scotiabank note that "USDCNY onshore spot has been persistently
trading around the PBoC's daily reference rate, suggesting dissipated one-way
speculation on the yuan exchange rate." Scotia believe that "USDCNY is likely to
rally through 6.35 and then head for 6.40 in the near term as EURUSD falls below
the 1.20 support. Meanwhile, the yuan is expected to outperform the CFETS basket
amid a broadly strengthening dollar. In the medium term, however, we still
believe that the EUR's potential strength will boost the yuan."
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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