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USD/CNY to see a moderate rise on a 12M horizon towards 7.40 – Danske Bank

USD/CNY has declined lately generally following the swings in the Dollar. Economists at Danske Bank analyze the pair’s outlook.

EUR/CNY to revert lower towards 7.70 in 12M shadowing EUR/USD lower

We keep our view of a moderate rise in USD/CNY on a 12M horizon towards 7.40 as we expect economic and financial risks in China to prevail for some time underpinning some further CNY weakness. Our view of a stronger USD in the medium to longer term also points to a higher USD/CNY. However, in the short term, we expect the cross to stay close to current levels around 7.15. 

For EUR/CNY we look for the cross to follow EUR/USD slightly higher in the short term but to revert lower towards 7.70 in 12M shadowing EUR/USD lower. The two crosses still trade with a high correlation.

 

US Dollar edges higher ahead of US GDP data, trades near 102.40

US Dollar Index (DXY) attempts to extend its gains on the second successive day, trading slightly higher near 102.40 during the European session on Thursday.
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USD/CHF Price Analysis: Consolidates above 0.8600 ahead of US core PCE data

The USD/CHF pair trades in a tight range above the round-level support of 0.8600 in the European session.
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