USD/CNY has stabilised and economists at Danske Bank look for a 7.0-7.20 range over the next six months.
Key quotes
“We look for economic growth to be 1.0% in 2020 (previously 5.2%) but to rebound to 9.0% in 2021 (previous 6.3%). We expect the government to add more economic stimulus but to do so in a measured way.”
“As we look for EUR/USD to be broadly stable over the next 12 months, with a slight strengthening bias, we also expect USD/CNY to remain range bound between 7.0 and 7.2. This implies that we look for EUR/CNY to stay in a narrow range of 7.6-7.9.”
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