USD/CNY to reach 7.23 by end-2019 – Standard Chartered

In a Bloomberg TV interview earlier today, Lemon Zhang, Standard Chartered Macro and FX Strategist, offers her outlook on the Asian currencies.

Key Quotes:

“Year-end forecast for the Yuan to 7.23.

Due to higher tariffs, decline in export-market share and weaker economic growth.

PBOC has changed its FX stance to allow more CNY depreciation.

Does not expect PBOC to conduct heavy market intervention at the expense of FX reserves.

Uncertainty over the trade war will continue to weigh on risk sentiment, High-beta currencies and those exposed to global trade or weaker semi-conductor business cycle will suffer.

'Very bearish" on Korean won and Taiwan dollar.

Like the yen as a safe-haven currency.”