EFTA Document EFTA01459698

12 January 2016 FX Blueprint: Forever Young Theme #3: Monkey business - Buy USD/CNH, buy USD/TWD RMB weakness is not over yet We see three reasons why it should continue; 1) further unwind of carry- sensitive trades, driven by widening interest rate differentials; 2) hedging of FX liabilities due to poor underlying fundamentals and rising credit risk and 3) higher tolerance for currency depreciation by the Chinese authorities. They would result not only in a higher USD/RMB but also inev