The reverse cycle factor shows that the market of RMB CFETS is still up space
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While the US dollar index has stabilized and rebounded slightly, the CFETS index of the RMB exchange rate has accelerated, and the bilateral exchange rate between RMB and the US dollar has also been strong. At the time of this, the counter cyclical factor is suspected to be a hidden market, and it is expected to continue to play a role in easing the excessive appreciation of the RMB.
If that is correct, during the reverse cycle play a role, the CFETS index is still facing some upside; to cope with the increasing demand of foreign regulators or the need to guide the devaluation of the RMB, the key moment let line to "push", to differentiate due to settlement demand leads to the trend of stronger exchange rate.
The timely differentiation of unilateral expectations can avoid the overshoot of the exchange rate, which leads to the obvious inflow of short term capital, and forms a disturbance to the ultimate goal of deleveraging.
In January, the yuan rose to 6.29 yuan from the end of 2017 to 6.5120 yuan, rising 3.5% in one month, the largest monthly change since 1994, and the RMB exchange rate once again attracted the market's attention. In addition to increasing the annual expectations, the institutions also have their own views on the current market and future trends.
The largest external factors market summary round of RMB strong and direct factor is the weak dollar, the U.S. government is intent to guide itself to the weakness of the US dollar, while the European Central Bank (ECB) the expected tightening can continue to support the strong euro, until the policy really landing, the United States that may still face some medium-term adjustment space.
The internal support factors of the strong RMB are China's stronger resilience than market expectations. With the normal exit from regulatory exit, the tolerance of strong RMB is also strengthening the market's expectations.
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