USD/CNY has consolidated sideways over the past month following the decline in December. Economists at Danske Bank expect the pair to head gradually higher over the coming months.
Moderate increase on renewed USD strength
“The rapid change in China has paved the way for a weakening of the USD both versus the CNY and the EUR. However, we still see the path to be lower for the cross over the next year.”
“A resumption of a stronger USD is also expected to drive a small rebound in USD/CNY. Forecast: 6.80 (1M), 6.95 (3M), 7.10 (6M), 7.10 (12M)”
“For EUR/CNY, we look for 7.21 in 3M and 7.24 in 12M.”
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