Tim Condon, Chief Economist at ING, suggests that based on stable CNY policy and ING’s house view that USD/Majors will range trade in 2016 they revised their yearend USDCNY forecast to 6.47 from 6.65. Key Quotes “March foreign reserves data is due tomorrow. The consensus forecast is $3.196 trillion, which would be a negligible $6.3 billion decline from February. We credit the PBOC’s USDCNY fixing policy, which Governor Zhou characterizes as enhanced reference to a basket of currencies, and the tightening of exchange controls/macropru for slowing reserve outflows from the unsustainable $100 billion per month pace of November- January. We think there are strong economic and political reasons for the PBOC to stay the course. Based on this and ING’s house view that USD/Majors will range trade in 2016 we revised our yearend USDCNY forecast to 6.47 from 6.65 (latest 6.48, Bloomberg median 6.70, forward 6.62).” For more information, read our latest forex news.