Goldman Sachs says to short Chinese yuan ahead of the G20 meeting next week
GS note CNH, and other Asian currencies, strength approaching the G20 meeting next week (June 28 and 29), and are looking to short CNH.
Citing that even if there is some sort of easing in trade tensions at the G20 they will not disappear entirely:
- likely to "ebb and flow"
- still see additional tariffs as "more likely than not"
GS also say yen looks attractive still (Fed rate cuts, signs of slower US economic growth to chip away at USD strength).
Yuan had a good one last week, following the PBOC holding it fairly steady since mid-May despite market expectations it would fall: