Within the span of four days the Yuan weakened from 7.14 to 7.26, and then rebounded to 7.18. Economists at Credit Suisse revise their USD/CNH forecast range higher to 7.05-7.35 (from 6.90-7.20).

Growth outlook remains challenging

“China risk sentiment continues in ‘roller coaster’ fashion, affirming our prior view that China's reopening is not a straight line.”

“We think trend declines in oil and CNH since mid-November reflect the more sobering reality of a possible global recession. Amidst this backdrop, we revise our USD/CNH forecast range higher to 7.05-7.35 (from 6.90-7.20).”