USD/CNY: 6.3 by end-2021 – Goldman Sachs

In its latest analysis on the Chinese economy, centered on the USD/CNY moves, analysts at Goldman Sachs expect the Chinese Yuan (CNY) to continue gaining in 2021 while forecasting a move towards 6.3 by the end of 2021.

In doing so, the report highlights the anticipation of no major changes in the interest rates by the People’s Bank of China (PBOC).

The piece, published late-Tuesday in the US, also expects China's Total Social Financing (TSF) growth to slow, coupled with a reduction in the government fiscal deficit.

USD/CNY stays depressed…

USD/CNY fades Monday’s bounce off the lowest since June 2018 while easing towards 6.6150 during the early Asian session on Wednesday. The pair’s inability to keep the recovery moves from the multi-month low favor the bears.