Long positions pile on Chinese yuan, Asian FX bulls maintain momentum

Long positions pile on Chinese yuan, Asian FX bulls maintain momentum: Reuters poll

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Bullish bets on the Chinese yuan strengthened after a bazooka of stimulus measures led to global investors reallocating funds to Asia’s largest economy, while long positions in most other emerging Asian currencies were largely steady, a Reuters poll showed on Thursday.

Long positions on the Chinese currency hit their highest since late January 2023, with analysts maintaining their bullish streak on the yuan for a fifth consecutive iteration of the fortnightly poll.

“The stimulus measures came in as a surprise and were larger than expected, given the base was already low. There is a positive bias in the Chinese yuan, so the USD/RMB could head lower over the coming months, and USD/Asia could fall in the medium term,” Parisha Saimbi, an EM Asia FX strategist with BNP Paribas said.

This article was written by Ryan Paisey at www.forexlive.com.