UBS forecast USD/CNY to succeed in 7.5 by June this yr:
- whereas progress is anticipated to speed up in China, efficient tariff charges might rise dramatically and be a headwind
- CNY has solely partially priced on this
On the opposite aspect, UBS see continued US greenback power.
- US exercise prone to keep sturdy, financial knowledge is prone to keep sturdy within the close to time period
- ongoing tariff worries for the remainder of the world, if new tariffs are launched, the US greenback might recognize additional
- US greenback to remain stronger for longer
- count on the Fed to chop for a complete of 50bps of easing, in 2Q and 3Q
This text was written by Eamonn Sheridan at www.forexlive.com.
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