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9 Feb 2015
CNY sees depreciation risks after soft trade data – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, comments that the sharp weakening in Chinese trade data increases the depreciation risks for CNY.
Key Quotes
“Trade data from China trade saw exports and imports weakening sharply. China’s January trade balance hit a record high surplus (+$60.0b vs. $48.9be) as components deteriorate (Exports Y/Y: -3.3% vs. +5.9%e; Imports Y/Y: -19.9% vs. -3.2%e) – there is a natural risk of the CNY currency to depreciate.”
“Last week, the PBoC delivered its first Reserve Requirement Ratio cut in three-years after China’s January manufacturing PMI contracted for the first time in two-years and non-manufacturing PMI hit a one-year low.”
“Softer data from the world’s largest economy is beginning to worry more of the market.”
Key Quotes
“Trade data from China trade saw exports and imports weakening sharply. China’s January trade balance hit a record high surplus (+$60.0b vs. $48.9be) as components deteriorate (Exports Y/Y: -3.3% vs. +5.9%e; Imports Y/Y: -19.9% vs. -3.2%e) – there is a natural risk of the CNY currency to depreciate.”
“Last week, the PBoC delivered its first Reserve Requirement Ratio cut in three-years after China’s January manufacturing PMI contracted for the first time in two-years and non-manufacturing PMI hit a one-year low.”
“Softer data from the world’s largest economy is beginning to worry more of the market.”