After a rally towards the 7.00 level, USD/CNY has taken a breather. Economists at Deutsche Bank expect the pair to trade around the 6.75 mark in June 2023.
Yield differential between China and the US could widen
“The yield differential between China and the US could widen due to the weakening of the Chinese economy. However, China's government is likely to use fiscal support to prevent the economic dip from becoming too severe.”
“We expect the CNY to be around current levels at USD/CNY 6.75 in June 2023.”
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