HSBC expect the USD/CNY reference rate to drift higher (yuan weaker)

Via a research note from HSBC on the yuan:

• expect daily USD/CNY fixing to slowly drift higher
• which will see spot also trending upwards
• don’t expect the move up to quick (HSBC say not like August last year when USD/CNY jumped nearly 700 points in 8 days)
• says the gradual increase of the reference rate is likely to be accompanied by measures such as verbal intervention to slow and smooth the movements in spot

I put an arrow to the jump back in August 2023, but there are other examples on this chart also (and of rapid moves the other way)

This article was written by Eamonn Sheridan at www.forexlive.com.