#USDCNY @ 6.95632 : Yuan could see a modest appreciation in the coming quarters – Commerzbank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
USD/CNY rose for the fifth consecutive week from 6.70 in mid-January to 6.96 last week. Economists at Commerzbank believe that the pair could move back lower in the coming quarters.
“Heightened geopolitical tensions between the US and China could continue to support USD/CNY in the near term. However, CNY could stabilize somewhat if the upcoming economic data shows a continued improvement in the economy.”
“Further, the tailwinds from Covid reopening and an expected weaker Dollar later this year could support a modest appreciation of the CNY in the coming quarters. But an expected narrowing in China’s trade surplus will limit the pace of any possible yuan appreciation.”
“Heightened US-China tensions are likely to keep the volatility high.”
[/s2If]
Join Our Telegram Group
