China’s weak economic re-opening continues to weigh on markets and the CNY, though hopes for stimulus measures have provided sporadic respite, along with People’s Bank of China fixing’s that indicate that investors should not view the CNY as a one-way bet on weakness. We are not hopeful of a meaningful package of stimulus measures, and with the economy flirting now with disinflation, there are growing signs that the weakness is spreading. Despite some recent USD weakness, we favour a move towards the 7.30 level over the coming quarter. The KRW once again sensitively reacted to the Fed’s additional hike possibility ... (full story)