China Macroeconomics & Academia

Christopher Balding

FX & Rates

<p>There has been much discussion on the link between the RMB and USD. We have already focused on the expected direction on the USD and RMB, the market expects RMB weakening, so here we will shed some light on some of the related aspects.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/034/578/original/Figure%201.jpg?1506590681" class="editor-image img-responsive" data-smartkarma-image-id="34578"></figure><div class="content-caption">Figure 1</div><p>In Figure 1, we see the change in long and short positions over last year of USD currency pairs. Commercial long positions and non-commercial short positions started off weak at the beginning of the year, but in June all the numbers switched and commercial…</p>

There has been much discussion on the link between the RMB and USD. We have already focused on the expected direction on the USD and RMB, the market expects RMB weakening, so here we will shed some light on some of the related aspects.Figure 1In Figure 1, we see the change in long and short positions over last year of USD currency pairs. Commercial long positions and non-commercial short positions started off weak at the beginning of the year, but in June all the numbers switched and commercial…

USD Reversal Will Push the RMB and Onshore Rates

CNY

USD Reversal Will Push the RMB and Onshore Rates