Fx 2017_ cny – pressures from usd strength, capital outflows and growth slowdown not relieved – action forex


FX 2017: CNY – Pressures From USD Strength, Capital Outflows And Growth Slowdown NOT Relieved
Chinese GDP expanded +6.7% in 2016, grabbing the mid-point of government’s target of 6.5-7%. Currency converter aud to usd Growth is expected to decelerate further, probably reaching +6.5% this year. Convert us dollars to pounds sterling At the Central Economic Work Conference held last December, top leaders of the Chinese Communist Party indicated the policy would focus on controlling credit and housing risks, compared with stimulating growth in the past year. Usd canadian exchange rate Yet, growth is still an issue concerning the government, with achieving growth targets a critical factor to ensure smooth leadership transition in late 2017. Swiss market index futures Meanwhile, renminbi should depreciate further. Euro to usd conversion Besides the broadly-based strength in US dollar, concerns over further renminbi depreciation would continue to lead to huge capital outflow, a behavior that aggravate renminbi’s weakness. Dollar pound conversion rate We expect USDCNY to rise above 7 in 2Q17.
At the last macroeconomic report for 2016, the National Bureau of Statistics reveals that China’s GDP expanded +6.8% y/y in 4Q17, up from +6.7% in the prior quarter. Gender definition sociology Growth in 2016 moderated to +6.7% in 2016, down from +6.9% in 2015 and marking the slowest pace in 26 years. Taux de change euro dollar australien Industrial production grew +6% y/y in December, down from +6.2% in November. Venezuela money to us dollars Over the full year of 2016, industrial production expanded 6%. Asian stock market futures Retail sales expanded +10.9% y/y, beating consensus of +10.7% and November’s +10.8%. Binary to english translator Urban fixed asset investment increased +8.1% for the full year 2016, slowing from +8.3% in the first 11 months of the year. Hex editor windows 10 Overcapacity in heavy industries will drag on China’s investment activity in 2017.
We expect growth to moderate further this year. Rate gbp to usd Nonetheless, the focus of the government has been shifted to stability, with emphasis put on the management of credit and housing risks. Javascript print command As suggested in the statement accompanying the Central Economic Work Conference held in December, the goal in 2017 is to maintain overall social and economic stability for the upcoming 19th Communist Party Congress, which is scheduled in late 2017, through controlling financial risks and protection of property rights. Binary music As growth takes a backseat in the economic plan, and given the fact that economic growth has stabilized last year, the government has delivered a less dovish message on the monetary policy. 1 usd to krw Such stance is also accompanied with a more flexible growth target. Usd nzd chart Advisers familiar with the authority signal that the government will target around +6.5% of growth this year, compared with 6.5-7% in 2016.
Renminbi fell against the US dollar for three years in a row. Dollar euro exchange rate today The offshore USDCNY soared +6.95% in 2016, following gains of +2.49% and +4.63% in 2014 and 2015, respectively. The fx firm Undoubtedly, part of the renminbi’s weakness against the greenback was driven by USD’s broad-based strength. Binary code translater Yet, massive capital outflow amidst concerns over further renminbi depreciation has also played a critical role in the currency’s weakness. Html code reader We expect both factors to continue to weigh on renminbi in 2017.
China’s FX reserve fell -US$41.08B in December, after plunging -US$ 69.57B in the prior month. 1 usd to bgn While at a slower pace, it is estimated that over 60% of the decline last month was due to capital outflow, compared with 50% in November. Usd brl exchange rate This has raised doubts over the effectiveness of the restrictive measures, including guidance for using Union Pay at overseas insurer (introduced in October), and restriction to bring renminbi overseas for the purpose of converting into foreign currencies (introduced in late November), implemented so far. Funny quotes about friendship Early January, SAFE stepped up the restrictions by imposing new administrative requirement for personal foreign currency purchase in China. Yahoo news canada For the year ahead, the government remains under pressure to intervene the market to curb renminbi depreciation.
We see several reasons for renminbi to go further lower this year. Us futures market hours Despite the retreat since the beginning of the year, we remain constructive over USD this year on anticipation that Donald Trump’s pro-growth policy would drive higher economic expansion and inflation, and facilitate a tighter monetary policy stance. Euro to pound exchange rate today Indeed, USDCNY jumped +2.5% after US presidential election, contributing almost 40% to 2016’s gain. Usd cad The “new” US-China trade relations might also weigh on renminbi. Gender identity quiz Trump indicated during his election campaign that he might impose a 45% tariff on Chinese exports to the US. Aud usd graph Uncertainty in the trade policy has raised concerns over China’s economic growth outlook which has been anticipated to slow further this year. Euro dollar exchange rate forecast 2016 Meanwhile, the Chinese government is tempted to allow renminbi to weaken further to stimulate exports.

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