FX Moment: Structural Yuan Bull Run vs Unsolved Yen Bull Puzzle

In this episode of the FX Moment podcast, recorded in Hong Kong, Bloomberg Intelligence Chief FX Strategist Audrey Childe-Freeman and Gary Ng, Senior Economist at Natixis CIB in Hong Kong, discuss Asia FX in 4Q and into 2027, with a focus on the yuan and the yen. The bottom line is that structural yuan bulls were validated into 4Q and may extend into 2027, with the 6.65 dollar-yuan reference value credible in the near to mid-term. This is mainly about a yuan-supportive balance of payments position and yuan appeal on global diversification strategies, while relative yield differentials are less of a driver for that currency pair. On the yen and on dollar-yen in particular, Gary and Audrey touched on the mixed drivers and considerations and on what may be the the best avenue to sustained yen strength beyond a turn in the US dollar.The FX Moment podcast is part of BI’s FICC Focus series.

Listen to this episode on Apple Podcasts and Spotify.