The Yuan has weakened since mid-April. Economists at Commerzbank analyze CNY outlook.

Weaker for longer

We forecast USD/CNY to largely stay beyond 7.2 through Q3 before falling back to around the key 7 mark in Q4 and below 7 in 2024 due to the anticipated softening of the Dollar. 

EUR/CNY will likely rise in the near term due to further tightening of ECB monetary policy for the time being.

Source: Commerzbank Research

See: USD/CNH could trade in a narrow 7.20-7.30 range for the remainder of July – Credit Suisse