USD/CNY has jumped above 6.40. The Chinese yuan is set to continue struggling amid a big policy divergency between the People’s Bank of China and the US Federal Reserve, economists at Commerzbank report.

Big policy divergence

“The Chinese central bank is facing a complicated situation, and my opinion is that the easing bias still remains, which implies a big policy divergence between China and the US.”

“The policy divergence suggests that the Chinese currency is facing depreciation pressure.”