China's Yuan to cling to range despite trade spat with US - Reuters poll

According the latest Reuters poll, China’s Yuan is expected to maintain its range trade in the coming months amid tight regulatory clampdown on the local currency until some clarity evolves over the US-China trade dispute.

Key Findings:

“Despite the severity of the dispute and the potential to disrupt trade flows elsewhere, the range of Yuan forecasts is even tighter than it was in polls taken in April and at the start of the year, reflecting that caution.

The move in the extremes of the range also suggests a gradual appreciation in the yuan. In the meantime, the resurgent U.S. dollar is at its strongest in over three months, but is still down more than 2 percent so far in 2018 against the yuan.

The Yuan is forecast to trade steady at 6.37 per dollar in three months, according to a Reuters survey of over 60 foreign exchange analysts taken May 3-9. The currency is predicted to trade at 6.36 in a year.

According to a separate Reuters poll on currency positioning taken last week, bullish bets on the Chinese yuan fell to the lowest since October in the previous two weeks. But the survey did not point to any sharp depreciation in the yuan.”