USD/CNY UNLIKELY TO EXTEND ITS DECLINE TOWARD 6.30 – SOCGEN

China FX has tried to reopen China and economists at Société Générale are wary of chasing the CNY rally. NEUTRAL BY JUAN “With USD/CNY already reversing more than 50% of its 2022 rise, more positive surprises should be introduced to deepen CNY’s rally to 6.30, but we remain skeptical. „ „Our year-end USD/CNY forecast of 6.80 includes a „gradual” reversal of key policies, including zero COVID. However, over the past two weeks, almost all key policies that were seen as negative for the market have been withdrawn. . „Currency markets are selectively advantage-oriented positive political surprises and their future effects on the economy.”

Michael Cooper

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