USD/CNH to move towards 7.45 by year-end – Societe Generale

Third
Plenum
meeting
is
going
to
happen
next
week.
The
discussion
around
reviving
the
property
market
and
consumer
sentiment
will
be
its
main
topic,
Societe
Generale
FX
strategists
note.
 

Retreat
from
7.30
for
USD/CNH
may
be
short-lived

“Soft
inflation
data
in
China
overnight
reinforces
our
view
that
consumer
sentiment
in
the
mainland
economy
remains
weak.”

“The
discussion
around
reviving
the
property
market
and
consumer
sentiment
will
be
the
main
topic
at
the
Third
Plenum
meeting
next
week.”

“The
consequences
of
subdued
economic
growth
means
the
retreat
from
7.30
for
USD/CNH
may
be
short-lived.
Our
EM
colleagues
pencil
appreciation
of
the
pair
towards
7.45
by
year-end.”