FX Strategy: The rise in the CNY and what it means for the global economy

Danske Research Team Danske Bank A/S

Key points

The strengthening of CNY is driven by the outperformance of the Chinese economy and increased likelihood of a Biden win
There are downside risks to our 12M USD/CNY forecast of 6.60
A stronger CNY is good for the world economy as it makes exports to China cheaper and stimulates global reflation

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Author

Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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