News

USD/CNY turns the corner and looks higher to 6.55 in the next months – Danske Bank

Chinese growth is moderating this year suggesting USD/CNY has turned the corner and economists at Danske Bank look for a higher USD/CNY over the next 6-12 months.

The Chinese economy has slowed in early 2021

“We see US recovery strongly and Chinese growth moderating this year. It suggests USD/CNY has turned the corner and we look for a higher USD/CNY over the next 6-12 months. Our forecast is unchanged at 6.55 in 3M and 6.70 in 12M.”

“We look for EUR/CNY to decline from 7.82 to 7.71 in 12M. It compares with the forward market pricing 8.11 in 12M and we thus recommend to hedge CNY payables if you are a EUR based company or investor.”

“The main risk is a weaker USD if inflation takes hold with a Fed that is keeping an accommodative stance. It would push USD/CNY lower.”

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.