StanChart Touts Offshore, Onshore Yuan Straddle

Apr 13, 2012 - Daniel O'Leary

Read More: Standard Chartered· People’s Bank of China·

Standard Chartered is advising investors to buy a one-year at-the-money U.S. dollar offshore Chinese yuan forward, while selling a one-year USD onshore Chinese yuan ATM forward. The trade is designed to take advantage of the perceived erratic and unpredictable recent currency fixes of CNY posted by the People’s Bank of China.

Investors should buy the USD/CNH....

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