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24 Sep 2015
China is difficult to stabilize - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi explained that PMIs are suggesting China's remains an economy difficult to stabilize.
Key Quotes:
"Despite active Big Bank presence across the curve, USD/RMB ground higher (leaning in the direction of government preference proved not so wise in the past week). Both suggest continuing capital outflows. China's interventions are. occurring against the backdrop of still a strong USD/EM bid, most dramatically in BRL. But the conclusion of President Xi's US visit still requires more stage management.
For China's firms and households the objectives of the new exchange rate management remain unclear, leaving uncertainty. While Golden Week and shut markets may provide officials some hoped-for respite, official China desperately needs better ideas. Still."
Key Quotes:
"Despite active Big Bank presence across the curve, USD/RMB ground higher (leaning in the direction of government preference proved not so wise in the past week). Both suggest continuing capital outflows. China's interventions are. occurring against the backdrop of still a strong USD/EM bid, most dramatically in BRL. But the conclusion of President Xi's US visit still requires more stage management.
For China's firms and households the objectives of the new exchange rate management remain unclear, leaving uncertainty. While Golden Week and shut markets may provide officials some hoped-for respite, official China desperately needs better ideas. Still."