FXStreet reports that economists at Danske Bank forecast the USD/CNY pair at 6.60 on a twelve-month view but there are downside risks to their outlook.

“We think two factors explain the move. The outperformance of the Chinese economy amid better control over the coronavirus and higher interest rates than the US; and the increased likelihood of a Biden win, reducing the risks of an uncontrolled, damaging trade war that would ensue under a second term Trump presidency.”

“We see potential for more strength if indeed the US election turns out to provide a clear Biden win, creating downside risk to our twelve-month USD/CNY forecast of 6.60. Among upside risk for the cross is a surprise Trump win and/or a muddy election result as well as renewed rising tensions between US and China, but also between China and Taiwan where tensions have built lately.”