Forex
Nomura Sees More Yuan Gains Amid Strong Corporate Flows
The US Dollar has seen significant losses against the Chinese Yuan in recent weeks. Since the end of December, the USD/CNY exchange rate has fallen by around 3.3%, with the current price near a record low of 6.77. Nomura analysts expect this decline to continue, with a predicted target of 6.55 by October.
The strongest driver of the Yuan's strength is reportedly Chinese corporate currency flows. In June, data showed a net foreign-exchange trade settlement surplus of $81.8 billion, the largest on record. This has led Nomura to maintain a short USD/CNH position with a high level of conviction.