In the third quarter, the USD/CNY will reach a high of 6.80, according to SocGen.

Societe Generale Economists never expected the Yuan currency to depreciate in such a disorderly manner. They forecast that the USD/CNY pair will be at 6.80 by the end of the third quarter of 2022.

May 05, 2022 - 02:36 PM 238 views

In the third quarter, the USD/CNY will reach a high of 6.80, according to SocGen.

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© In the third quarter, the USD/CNY will reach a high of 6.80, according to SocGen.

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Societe Generale Economists never expected the Yuan currency to depreciate in such a disorderly manner. They forecast that the USD/CNY pair will be at 6.80 by the end of the third quarter of 2022.

CNY could recover immediately in the near future.

In terms of the political scenario, the year 2022 is vital for the Communist Party Congress, which is set to take place in 4Q. This means that the authorities are willing to avoid disorderly price actions in Forex trading (FX) and on its prices. Hence, we cannot predict any considerable deflation from here.

Immediately in the near future, we believe that the CNY will recover from depreciation, but we can watch the more consistent US dollar strength in the upcoming six months.

Therefore, we are here to revise the forecasts for the USD/CNY currency pair in 2Q to 6.8, 3Q to 6.4, and 4Q to 6.45, 6.5, and 6.5 points, respectively.

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