CNY: Yuan appreciation trend has developed to prevent capital outflows - ING

Analysts at ING are looking for the daily CNY fixing to remain strong in the coming months – following DXY asymmetrically such that the yuan fixing is likely to stay fairly stable on days when the US$ is strong, while moving higher when the US$ is weak.

Key Quotes

“Indeed, regulators are unlikely to relax the current administrative measures on capital outflows anytime soon, which should ensure yuan stability. We have revised our end-2017 USD/CNY forecast to 6.65.”