USD/CNH seen at 7.08 through Q3 and 6.85 through Q4 – CIBC

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7 August 2023

USD/CNH seen at 7.08 through Q3 and 6.85 through Q4 – CIBC

Policy beta to CNH should dissipate a bit, which suggests modest downside for USD/CNH in the near-term, economists at CIBC Capital Markets report.

Biggest CNH bulls may be disappointed

Incoming policy support, and the reversal of the overvalued USD, supports our forecast of USD/CNH at 7.08 through Q3 and 6.85 through Q4.

The CNH should rally over the coming year on a declining USD and eventual fiscal support, but the biggest CNH bulls may be disappointed.

See: USD/CNY will likely continue to trade largely between the 7.10 and 7.20 range – Commerzbank

EUR/GBP prods four-day uptrend beyond 0.8600 on downbeat German Industrial Production, UK GDP eyed

AUD/USD: Dwindling bets for a deeper pullback – UOB

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