BAML lowers USD/CNY 2018 forecast

Bank of America-Merrill Lynch (BAML) lowered their 2018 forecasts for the Chinese Yuan in a research note. Despite the lower revision, BAML's projections are still higher compared to other forecasts, calling for 6.4000 by the end of 2018's fourth quarter.

Key highlights:

  • FX selling by Chinese exporters, foreign portfolio investment into Chinese government bonds and equities driving Yuan lower.
  • BAML's 2018 Q1 forecast also lowered from 6.9500 to 6.5000.
  • Yuan expected to weaken further on deteriorating Chinese growth and inflation, as well as policy makers allowing more capital to flow out of China.
  • BAML expects the Chinese economy to grow by 6.8% in 2018, versus 2017's 6.9%.

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.