USD/CNY around 6.30 by year-end – JP Morgan

FXStreet (Edinburgh) - The expected appreciation of the greenback in H2 could lift the pair to the 6.30 area by the end of 2015, suggested analysts at JP Morgan.

Key Quotes

“We maintain our 2015 year-end USD/CNY spot forecast at 6.30”.

“We believe the PBoC policy bias for near-term FX stability will result in USD/CNY moving in a narrow range of 6.20-6.30”.

“Although we expect modest weakening in CNY against the dollar in 2H of this year, this trend is likely to be mainly driven by broad USD strengthening (associated with approaching Fed lift-off), rather than a depreciation bias regarding the RMB from the PBoC”.