EFTA Document EFTA01459599

12 January 2016 FX Blueprint: Forever Young This large policy divergence will put further upward pressure on USD/CNY, as narrowing rate differentials encourage carry-seeking trades to unwind and support onshore repayment and refinancing of USD liabilities. A simple historical relationship would suggest that for every 100bp of narrowing in rate differentials. USDICNY tends to move higher by 30 big figures. Finally, FX outflows will likely persist and remain an important driver of RMB w