📝 Recommend Staying Long USD/CNH Via Options: J.P. Morgan

USD/CNH has rallied past the key 7.30 level and is up nearly 1% since we last published, as markets remain concerned over China􏰀s growth outlook. To that extent, recent activity data has not been particularly constructive. The Caixin Services PMI reading dropped to its lowest level since Dec􏰀22 this week, and private developers like Country Garden continue to face ongoing liquidity stress. Unsurpris- ingly, market sentiment on China has remained weak and weighed on CNH, despite continued stimulatory measures from the PBoC. As we􏰀ve previously highlighted, the CCF continues to be set at a level that often offsets nearly all of the prior day􏰀s intra-day weakening in USD/CNY. Recommend staying long USD/CNH via options. - J.P. Morgan Strategy