Short betting Yuan reached its peak because of the economic misery of China weighing the currency of the developing country
Bearish betting on Yuan China has reached the highest since mid -May, with an analyst that turned away for the first time in the midst of an increase in the economy, a Reuters poll showed on Thursday.
The Chinese economy loses steam in July, with retail sales an increase of only 3.7% years-to-year, far below the 5.9% growth that is expected in Reuters’ opinion.
Industrial output has grown 5.7%, the weakest speed since November 2024.
The price of a new house fell 2.8% in July from the previous year, extending the stagnation of two years, while the fixed asset investment rose only 1.6% in the first seven months of 2025, the estimated lost for 2.7%.
Meanwhile, analysts hold on to their Bearish prospects for South Korea, which has not changed since early May, while slightly cutting a short position in the Singapore dollar, a two -week Reuters poll shown by 11 respondents.
Sentiment for the Indonesian rupiah changed negatively after turning bullish, while the short position in the Taiwan dollar was trimmed.
Bank Indonesia unexpectedly cut the benchmark for 7-day repurchase rates of 25 basis points on Wednesday. The poll response is received before the tariff decision.
For Indian Rupees and Malaysian Ringgit Analysts, peeling the bullish position. Bearish Peso Philippines bets are slightly trimmed, and Thailand Analyst Baht cuts the bullish position.
Anz Anz sees India’s growth momentum slowing down with warm household consumption and expected investment during the future quarter, adding that export competitiveness faces headwinds from US tariffs. “Based on this view, we believe that INR is likely to trade with depreciation biases in approaching terms, performing poorly compared to his colleagues in Asia.”
Meanwhile, Reuters reported that China was considering allowing stablecoin to be supported by Yuan for the first time to increase broader adoption globally.
China is expected to discuss expanding the use of Yuan and maybe stablecoin for cross -border trade at the Shanghai Cooperation Organization Summit which will be held on August 31. 1 in Tianjin.
“Considering the potential for the reluctance of the Federal Reserve to provide significant interest rates at the upcoming FOMC meeting (depending on work and inflation data), the market reporting from the expectations of interest rates can encourage US dollars and higher treasury results, creating headwinds for market currencies that appear,” said Poon Panichpibool, market strategy in Krung Thai Bank.
The money market reflects the opportunity of 93% of the 25-Basis-Poin-Poin-Fed Fed Cut in September. The US has lost its value of 0.8% in the last two weeks, but is on a higher path this week, up 0.4% so far. [USD/]
“We have a fairly strong selling action in USD for most 1 hour 2025 and the currency is now waiting for macro cues from data. With FED inflation and work mandate in potential conflicts, we can be in a period of consolidation,” said Fiona Lim, a senior forex strategy in Maybank Singapore.
“Currencies like KRW and TWD which get the most in 1 hour of 2025 have the biggest space to be replaced.”
Investors are anxious about Federal Reserve’s independence after another attack from President Donald Trump before the statement from the chairman of Jerome Powell at the Jackson Hole Symposium this weekend.
The poll determining the position of the Asian currency is focused on what is believed by the analysts and fund managers is the current market position in nine market currencies emerged: Yuan China, South Korea wins, Singapore Dollars, Indonesian Rupiah, Taiwan Dollar, Indian Rupee, Philippine Peso, Malaysian Ringgit, and Thai Horse.
The poll uses an estimated long or short position on a minus scale 3 to plus 3. Plus 3 score shows the market significantly the length of the US dollar.
Source: Reuters
