FXStreet reports that economists at Danske Bank expect a stronger yuan over the next year.

“We look for a continuation of the move over the next six months as monetary policy is diverging with China aiming for exit, while the US still has an easing bias. Overall USD weakness also supports a decline in USD/CNY in the short-term.”

“We have revised down our one month forecast to 6.55 (from 6.60), three months forecast to 6.50 (from 6.55) and six months forecast to 6.45 (from 6.50) while keeping our 12 months forecast at 6.40. Our forecast points to a stronger CNY than the forward market expects.”