Commerzbank: China Slowdown Weighs on CNY Against USD

Commerzbank analysts Charlie Lay and Dr. Henry Hao highlight that China’s industrial profit growth decelerated to 21.1% year-on-year in May, down from the previous pace. They note that softer consumption and investment figures are signaling a broader economic slowdown, which is weighing on the Chinese yuan (CNY) against the US dollar.

The analysts point to these factors as contributing to a less favorable outlook for CNY, as the slowdown undermines confidence in the currency. No specific targets were provided, but the tone suggests ongoing bearish pressure on the yuan.