USD/CNH recently surpassed 7.2000, prompting analysis from CIBC Capital Markets. The outlook suggests a peak near 7.2500, with minor relief expected towards 7.2000 and 7.1500 in Q3 and Q4, respectively.
Reports of state banks selling USD to defend the onshore Yuan are frequent, and the Yuan’s gains from USD weakness are anticipated but might be less than its North Asian counterparts, such as JPY and KRW.
