USD/CNY to drop back to 6.75 by end-2019 - ING

In the view of the analysts at ING, the Chinese Yuan is likely to appreciate by end-2019 amidst a technology war.

Key Quotes:

“We also believe that USD/CNY and USD/CNH will continue to stabilize, with gradual slight appreciation, so that the yuan market can shake off substantial pressure from investors betting on yuan depreciation. 

Another reason for our call for an appreciating yuan is that when the yuan is stable the onshore asset market is also stablev- important during a technology war that can affect asset markets worldwide because of the interlinked global supply chain.

Based on the above reasons, we believe that the yuan can appreciate back to the 6.75 level, a level seen back in the first week of May, by the end of 2Q19.”