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.”