CNH could be stronger for spells - Natixis

Research Team at Natixis notes that the China Hong Kong yuan appreciated sharply after the Chinese authorities tightened up capital control to curb outflows.

Key Quotes

“The USD/CNH passed below the USD/CNY, but this situation will not last, particularly if, as we expect, the US dollar and US long interest rates recover over the short to medium term. We expect the China Hong Kong yuan to continue to depreciate, but more gradually than in 2016. We therefore see the USD/CNH going on to test 7.25 at the year-end.”