CNY: No clear reason for NDF retreat
CNY NDF moved further to the right last week as the short-squeeze continued. "We, however, continue to think this will be a temporary phenomenon before expectation of a faster pace of CNY appreciation is again reflected into the NDF market," said Ashley Davies, foreign exchange strategist at UBS in Singapore.
According to the bank's calculations, the three-month USD/CNY NDF is pricing in an annualised renminbi appreciation of 4.5%. This fell off a peak of almost 18% appreciation priced in less
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