Latest MS client note courtesy of our friends at efxnews.com
Say Stanley:
"Our thesis, is that ahead of the lunar New Year (Feb 8) and
China hosting the G20 (Feb 26-27), there is a strong incentive for
policymakers to keep RMB stable. Moreover, we note the risk
that USDCNH could be driven down in the near term amid recent press
reports on speculation against RMB. The FX reserves data over the
weekend will be an important test. Given some in the market are
expecting a very large decline ($150-$200bn), a smaller fall in reserves
could ease market concern and contribute to a near-term strengthening
in CNH," MS argues.