Lates News

The RMB exchange rate index will significantly strengthen, and the central fluctuation range of the USD to RMB exchange rate will move from 7.3 to 7.2. The macro team of China Galaxy Securities stated that with substantial progress in the China-US trade negotiations, uncertainties in the macro economy of China and the US have significantly decreased. The RMB exchange rate will show structural differentiation, with the gains of the Euro and Yen becoming more significant. At the same time, China Galaxy Macro believes that if the USD breaks the key level of 7.2 against the RMB, the market will have strong expectations for appreciation, and the foreign exchange supply and demand relationship may reverse, leading to a short-term potential breakthrough of 7.1 for the USD against the RMB. However, stabilizing around 7.1 may require more support. Further escalation of China's fiscal policy or more positive signals from the next stage of China-US trade negotiations will help shift the central fluctuation range of the USD to RMB exchange rate from 7.2 to 7.1.