14 Jan 2016
USD/CNY: dubious on veracity of 2015 China growth - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi explained that the PBOC squeezed out spec CNH shorts but the attempted stabilization is falling somewhat flat.
Key Quotes:
"The fact USD/CNY levels have sustained at higher levels is one hint spec will return one day. And we told you so: The cross-year funding squeeze we first mentioned in November - well, guess what, it happened.
4Q15 GDP will probably confirm 2015 was a year the Chinese would like to forget. But much of 2016 may be more of the same. And unfortunately we still have doubts about the veracity of reported 2015 growth."
Key Quotes:
"The fact USD/CNY levels have sustained at higher levels is one hint spec will return one day. And we told you so: The cross-year funding squeeze we first mentioned in November - well, guess what, it happened.
4Q15 GDP will probably confirm 2015 was a year the Chinese would like to forget. But much of 2016 may be more of the same. And unfortunately we still have doubts about the veracity of reported 2015 growth."