15 Jul 2015
Better prospects for the Chinese economy in Q3 – BTMU
FXStreet (Edinburgh) - Derek Halpenny, European Head of GMR at BTMT assessed the recent releases in the Chinese economy.
Key Quotes
“The string of economic data releases from China today offered some good news for the markets with real GDP coming in unchanged in Q2 from Q1 at 7.0% on an annual basis”.
“Importantly, the other data showed acceleration in June – retail sales and industrial production both picked up and hence we can assume that the momentum of real GDP going into Q3 was positive and raises the prospect that we might get some pick-up in economic activity if this momentum can be sustained”.
“The fact that we now have some evidence that policy stimulus may be having an impact will lift optimism in regard to global growth in the second half of the year. USD/CNY remains stable and this may not change over the short-term”.
“Our colleagues in Hong Kong do expect USD/CNY to begin drifting lower in H2 2015 and a continuation of data like we had today would certainly raise the prospect of our positive CNY outlook materialising going forward”.
Key Quotes
“The string of economic data releases from China today offered some good news for the markets with real GDP coming in unchanged in Q2 from Q1 at 7.0% on an annual basis”.
“Importantly, the other data showed acceleration in June – retail sales and industrial production both picked up and hence we can assume that the momentum of real GDP going into Q3 was positive and raises the prospect that we might get some pick-up in economic activity if this momentum can be sustained”.
“The fact that we now have some evidence that policy stimulus may be having an impact will lift optimism in regard to global growth in the second half of the year. USD/CNY remains stable and this may not change over the short-term”.
“Our colleagues in Hong Kong do expect USD/CNY to begin drifting lower in H2 2015 and a continuation of data like we had today would certainly raise the prospect of our positive CNY outlook materialising going forward”.