News | Forex Optimum

News

News

Goldman Sachs sees the Chinese yuan strengthening to 6.5 per dollar over the next 12 months

CNBC reports that according to Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs,  we expect the onshore Chinese yuan to strengthen to 6.5 per dollar over the next 12 months, 

“We’ve recently firmed up … in particular, our Chinese renminbi forecast from 6.7 to 6.5 on a 12 month view,” Moe told CNBC, adding that it was one of the firm’s “strongest views” for Asian currencies.

Both the onshore and offshore Chinese yuan saw a dramatic strengthening this week from levels above 6.8 against the greenback. That came as data from China’s National Bureau of Statistics showed the country’s first positive retail sales report for 2020 in August.

Moe said the strength of the Chinese currency would serve a “tailwind” for stocks in the country.

“Historical evidence is very, very clear that a strengthening currency is generally supportive for the equity market,” he said.

In particular, the more domestic-oriented parts of the market are likely to benefit as the external-facing sectors “become incrementally less competitive” against the backdrop of a stronger currency, the strategist said.

You may also be interested:

18:18 01.10.2020
U.S. House Speaker Pelosi says she is still "hopeful" that stimulus agreement can be reached
But acknowledges that Republicans and Democrats are still far apart on state and local aidSays that sides are coming closer on health provisions but the language is still an issueNot in agreement on how to aid small businesses, including restaurants
17:39 01.10.2020
Gold: The downtrend is being challenged - TDS
FXStreet notes that gold (XAU/USD) has managed to regain traction on Thursday and has surged above the $1900 mark. Economists at TD Securities note that US Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi have both reported progress in agreeing on a new fiscal stimulus bill which is positive for the yellow metal.“News that Mnuchin and Pelosi are inching forward on a new round of fiscal stimulus is breathing life into the reflation trade, supporting equities, gold and precious
Deposit
options
Trading
platform
download
Bonuses VIP