Chinese Yuan: Policy support eyed as growth slows – Commerzbank
Commerzbank’s Charlie Lay, Dr. Henry Hao and Moses Lim note that China’s July data showed weaker Industrial Production and Retail Sales, underscoring fading momentum at the start of Q3.
China's economy experienced a slowdown in the beginning of Q3, as indicated by weaker July data for Industrial Production and Retail Sales, which fell below market expectations. In response, Beijing has called for new fiscal measures to support growth. The debate now centers on the speed and methods of intervention. China's banks saw a significant decline in corporate FX sales in July, down to USD25.2bn, a record low for the month, which highlights the currency's increased exposure to deteriorating sentiment surrounding China's growth outlook.
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- China: Policy support and structural shifts – HSBC fxstreet.com
