Dollar’s bounce can go further if USD/CNH consolidates above 7 – SocGen

USD/CNH has popped its head above 7 for the first time year. Does USD/CNH point to a broader Dollar bounce? Kit Juckes, Chief Global FX Strategist at Société Générale, believes that the USD could maintain its bid tone. 

If the Yuan’s a canary, the Dollar’s bounce has further to go

“We are now likely to see USD/CNY head higher – to 7.3 by the end of this year.”

“If USD/CNH consolidates above 7 in the next few days, that may well open the way for further downside tests of USD/GBP and EUR/USD (and AUD/USD, for that matter). Meanwhile though, our USD/CNH forecast change also implies a solid gain ahead for CAD/CNH.”