Commerzbank: Soft China credit may spur PBoC easing
Commerzbank analysts see soft Chinese credit conditions as a potential trigger for PBoC easing, while USD/CNY remains stable around 6.75.
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Commerzbank’s Charlie Lay and Dr. Henry Hao point out that USD/CNY is stable near 6.75. Their model also implies a slightly stronger PBoC, according to the note.
Soft credit conditions in China may encourage the People’s Bank of China to ease monetary policy. That outlook keeps the yuan in focus as traders assess the next policy signal.
Source: FXStreet Forex News