The Chinese Yuan is seen gathering extra downside traction in the near term.
3 Details about Yuan that you should be aware:
1- Our weaker outlook of China’s economy also supports our view of a weaker CNY going forth.
2- Overall, against the CNY, we believe USDCNY will trade in the new normal of above 7.00 going forth.
3- Our new point forecasts for USDCNY are 7.20 at 4Q19, 7.25 at 1Q20 and 7.30 for both 2Q and 3Q20.