- Analytics
- News and Tools
- Market News
- USD/CNY faces downside pressure in the next months - UOB
USD/CNY faces downside pressure in the next months - UOB
FXStreet reports that according to Strategists at UOB Group’s Quarterly Global Outlook 3Q 2020, the Chinese currency is expected to gather further buying interest in the medium term.
“Despite the renewed elevated political risk between the US and China, CNY is flat on the quarter (2Q) at about 7.09 /USD. While it is inevitable that US-China relationship would remain tense heading till into the US elections in November, the fact that both sides are still honoring the Phase 1 trade deal probably soothes nerves about the CNY. At the same time, the “world’s factory” is showing tentative signs that it has probably bottomed in the 1Q (-6.8%). Exports have stabilized to a modest growth (1.4% in May) while industrial production have flipped back to 4.4% y/y in May from an unprecedented 1.1% contraction in March. Manufacturing PMIs, both official and Caixin have both rebounded into expansionary territory above 50.”
“With the Chinese economy is on track for a firmer recovery in the 2H and assuming the US-China relations do not deteriorate beyond the current war of words, our previous view of a recovery in CNY in 2H remains intact. Our USD/CNY forecasts are updated to 7.12 in 3Q20, 7.09 in 4Q20, 7.05 in 1Q21 and 7.00 in 2Q21.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
