FXStreet (Guatemala) – Analysts at Bank of Tokyo Mitsubishi explained that at this point, one can argue all major Chinese assets (stocks, bonds, FX, energy) are unrealistically priced amid clumsy government control and intervention.
Quotes:
“FX is actually better in that 6.2000 seems consistent with the current pattern of capital flows. Intraday trading, though, remains within a contrived, very narrow range, with the past week seeing the cross capped by 6.2100.”
“Such policy will lose reserves but so what? China had been hoping to shed some reserves for years. The longer exchange rates remain in a very narrow range the higher the odds China has shifted to holding all things steady while its economy cools. We still look for PMIs to confirm that steady economic improvement continued into July.”
(Market News Provided by FXstreet)