Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Head of FX Strategy
Summary: The People’s Bank of China (PBoC) fixed USDCNY midpoint higher after a similar move earlier in March, signaling that they remain open to orderly weakness of the yuan. China’s Q1 GDP growth was strong on the headline, but details remained weak and suggest that yuan may be used as a tool to support export-led growth. Dollar strength and competitive yen weakness also continue to test the PBoC patience, and we look for further yuan weakness which can also have spillover effects for other Asian FX.
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