USD/CNY: Unlikely to trade at and above levels of 7.00 in the foreseeable future – Commerzbank

CNY strength is beginning to erode. Economists at Commerbznk believe that the USD/CNY is set to trade in the upper 6-ish range.

CNY to give up some of its strength again

“If we spend more at the gas station, we won't be able to buy as many sofas or hot tubs as we have in the last two years. And that means the renminbi will have to give up some of its strength again.”

“I cannot imagine that USD/CNY will again trade at and above levels of 7.00 in the foreseeable future. But I can imagine levels in the upper 6-ish range.”