EUR/CNY: A pair to follow much more closely in the coming months than it has been for a while – SocGen

Market news

18 July 2023

EUR/CNY: A pair to follow much more closely in the coming months than it has been for a while – SocGen

The Yuan has fallen against all G10FX in the last nine months. Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes CNY outlook.

USD/CNY seen at 7.40 at the end of this year

Our forecasts look for USD/CNY at 7.40 at the end of this year, and DXY at 97, which represents an unusual degree of divergence (and the highest EUR/CNY level since 2014). If nothing else, that’s going to make EUR/CNY a pair to follow much more closely in the coming months than it has been for a while.

The only comforting news on this front so far is that USD/CNY did turn lower at the same time as EUR/USD turned higher again at the start of this month.

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