Great analysis from Nordea:
In 2021, China’s growth momentum cools off and the focus of global growth will temporarily move to other countries, which should be a negative factor for the CNY. In a longer horizon, China’s ambition continues to be high.
China’s main political event of thee year, the National People’s Congress, came to a conclusion today. In this note, we will shortly summarise what kind of economic policy stance we can expect from China in 2021 and what this implies for FX. In addition, we will go through the main points of the new five year plan. In sum,