0311 GMT - USD/CNY is likely to fall on optimism on U.S.-China trade talks, with investors expecting some form of de-escalation in the coming months, say Goldman Sachs analysts in a commentary. The analysts add that CNY short positions against the greenback have recently shifted to long positions. GS strategists say that the downside tail in USD/CNH presents value. The decline in USD/CNY could be fast and event-driven in the short term, the analysts note. Over the medium term, the PBOC may prefer a more gradual and controlled adjustment through various methods, such as having state banks buy the U.S. Dollar amid a rising yuan, the analysts say. USD/CNY is last traded at 7.23. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
May 05, 2025 23:11 ET (03:11 GMT)
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