FXStreet reports that economists at Danske Bank look for a higher USD/CNY over the next 6-12 months.

“We see US recovery strongly and Chinese growth moderating this year. It suggests USD/CNY has turned the corner and we look for a higher USD/CNY over the next 6-12 months. Our forecast is unchanged at 6.55 in 3M and 6.70 in 12M.

“We look for EUR/CNY to decline from 7.82 to 7.71 in 12M. It compares with the forward market pricing 8.11 in 12M”.

“The main risk is a weaker USD if inflation takes hold with a Fed that is keeping an accommodative stance. It would push USD/CNY lower.”