Further downside expected in CNY – UOB

The Chinese Yuan is seen gathering extra downside traction in the near term, suggested Researchers at UOB Group in its Quarterly Global Outlook.

Key Quotes

“Our weaker outlook of China’s economy also supports our view of a weaker CNY going forth”.

“Overall, against the CNY, we believe USD/CNY will trade in the new normal of above 7.00 going forth”.

“Our new point forecasts for USD/CNY are 7.20 at 4Q19, 7.25 at 1Q20 and 7.30 for both 2Q and 3Q20”.