MS say the yuan will weaken further over the medium term

  • Say H2 data from China will show further slowdown in growth
  • Cite the potential for rate cuts in H2 to weigh on yuan
  • Also to weigh will be corporates payment on external debts

Note, this is medium term view from MS ... but it could already have started given today's move in USD/CNH! Up sharply. And it seems to have led to some wider USD buying nearly across the board?

Update: