USD/CNY seen at 6.20 in 12-month – Danske Bank
|Allan von Mehren, Chief Analyst at Danske Bank, revised higher the outlook for the Chinese Yuan within a year’s view.
Key Quotes
“The continued strong correlation with the overall USD development has continued to dominate the development in USD/CNY and a move in relative rates in favour of the USD has not been able to break this correlation. We thus put more weight on the correlation with the USD now. Our expectation of a further decline in the trade-weighted USD has therefore led us to revise our 12M forecast down to 6.20 – a change from our previous forecast of 6.70”.
“It also means we no longer look for a further depreciation of the CNY versus EUR. Our 12M EUR/CNY forecast is now 7.94 versus a forward rate of 8.26”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.