This is why JPM analysts are still long the U.S. dollar/Chinese yuan (USD:CNY)
==========
J.P. Morgan analysts are staying long the U.S. dollar/Chinese Yuan (USD:CNY), according to a Global Asset Allocation report. The U.S. dollar/Chinese Yuan (USD:CNY) continues to stay in the 7.25-7.27 range in recent weeks. The index is up more than 2% year-to-date, and up 0.43% from the previous month. The dividend payout pressure is expected to pick up from June and then peaking in late July. The Central Bank of the People's Republic of China expanded the quota for Qualified Domestic Institutional Investors (QDII) for the first time since the middle of last year. With the U.S. dollar/Chinese Yen (USD:CNY) tracking about 1% below rate differentials, and with geopolitical risks 'still relatively benign,' it may be also in the PBoC's interest to release some pent-up depreciation pressure now, in exchange for greater policy room for FX stability in the future. JPM's three-month call spread: K = 7.25/7.37. Spot ref 7.2663. Cost 45 basis points. Marked at 32 basis points.
https://seekingalpha.com/news/4116327-this-is-why-jpm-analysts-are-still-long-the-us-dollarchinese-yuan
Seeking Alpha /
npub1qpf…damf
2024-06-14 19:08:40
Author Public Key
npub1qpfrthtcf6g8grmwfv45qf28aa4xqk73pgnmwjdfuze8zl2l2cnsewdamfPublished at
2024-06-14 19:08:40Event JSON
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"content": "This is why JPM analysts are still long the U.S. dollar/Chinese yuan (USD:CNY)\n==========\n\nJ.P. Morgan analysts are staying long the U.S. dollar/Chinese Yuan (USD:CNY), according to a Global Asset Allocation report. The U.S. dollar/Chinese Yuan (USD:CNY) continues to stay in the 7.25-7.27 range in recent weeks. The index is up more than 2% year-to-date, and up 0.43% from the previous month. The dividend payout pressure is expected to pick up from June and then peaking in late July. The Central Bank of the People's Republic of China expanded the quota for Qualified Domestic Institutional Investors (QDII) for the first time since the middle of last year. With the U.S. dollar/Chinese Yen (USD:CNY) tracking about 1% below rate differentials, and with geopolitical risks 'still relatively benign,' it may be also in the PBoC's interest to release some pent-up depreciation pressure now, in exchange for greater policy room for FX stability in the future. JPM's three-month call spread: K = 7.25/7.37. Spot ref 7.2663. Cost 45 basis points. Marked at 32 basis points.\n\n\n\nhttps://seekingalpha.com/news/4116327-this-is-why-jpm-analysts-are-still-long-the-us-dollarchinese-yuan",
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