Nomura's Lu Sees More Room for Yuan Depreciation

The video discusses China's economic fundamentals, highlighting rapid credit growth and depreciation pressures. It covers the Philippines' CPI data, indicating inflation concerns ahead of a central bank meeting. The impact of foreign exchange policies on market sentiment is analyzed, with a focus on temporary effects. Currency forecasts are explored, considering psychological levels and the PBOC's potential defense strategies. The interplay between fundamentals and sentiment in driving currency volatility is also examined.

What are the implications of the capital account and borrowing by Chinese companies?

What role does sentiment play in the volatility of the economy as discussed in the text?