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21 May 2014
Far Eastern profits - ANZ
FXStreet (Barcelona) - Irene Cheung, FX Strategist at ANZ explains opportunities in the Far East.
Key Quotes:
"With positioning for RMB appreciation out of the way, we expect interest rate parity (IRP) to reassert in the CNH market with implied yields normalizing further."
"While the process has started, we see further room to go."
"We recommend buying 1x12 USD/CNH forwards, targeting a spread of 1,250pips vs 688pips currently (stop loss 400 pips)."
Key Quotes:
"With positioning for RMB appreciation out of the way, we expect interest rate parity (IRP) to reassert in the CNH market with implied yields normalizing further."
"While the process has started, we see further room to go."
"We recommend buying 1x12 USD/CNH forwards, targeting a spread of 1,250pips vs 688pips currently (stop loss 400 pips)."