- Analytics
- News and Tools
- Market News
- USD/CNY to grind higher towards 6.55 by end-2022 – TDS
USD/CNY to grind higher towards 6.55 by end-2022 – TDS
The renminbi (CNY) has hit its highest level in six years on a trade-weighted basis and firmest versus USD since May 2018. In the view of economists at TD Securities, the CNY is likely to soften into H2 2022. In the meantime, they are constructive on CNY and CNH and expect further strength vs. the trade-weighted basket.
Underlying support for the CNY is likely to wane
“CNY is supported by China's burgeoning current account surplus and strong inflows. Risk/reward is skewed towards more CNY upside in the next few months. As such, we are constructive on CNY and CNH and expect further strength vs. the basket over H1 2022.”
“Further out, underlying support for the CNY is likely to wane. Exports are likely to soften, and relatively higher US rates will reduce inflows to China. We think these factors will likely to lead to greater pressure on the CNY into H2 2022 and forecast USD/CNY to reach 6.55 by end-2022.”
© 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
