USD/CNY to test 6.95 in 3 months on further US tariff hikes risk – Goldman Sachs

Analysts at the US investment banking giant, Goldman Sachs, offer their outlook on the USD/CNY pair in the wake of the US-China trade impasse.

Key Quotes:

“Maintains their 6 and 12-month forecasts for the Yuan at 6.65 and 6.60 respectively due to an expected trade deal in coming months. 

But challenges and uncertainty remain.

Lowered the 3-month forecast to 6.95 from 6.65 to the USD.

The risk has risen for further tariff hikes from the US. 

China's monetary and fiscal policy will remain supportive of growth stability.”