USD/CNY seen at 7.30 in 12-month – Danske Bank

Analyst Thomas Rosenlund at Danske Bank believes the Chinese currency could depreciate to the 7.30 area vs. the greenback within a year’s view.

Key Quotes

“In terms of the USD, it is noteworthy how USD/CNY continues to move higher”.

“Importantly, however, it is still a pure reflection of USD strength as the CNY remains close to flat against the basket”.

“Irrespective, we still think the CNY is set to weaken going forward as growth is under pressure, debt risks are rising, the Fed is resuming rate hikes and net FDI flows are no longer positive for China. We forecast USD/CNY at 7.30 in 12M”.