Chinese yuan to weaken with or without US-China trade progress in 2020 - Reuters poll

The latest Reuters poll of fx strategists revealed that the Chinese yuan will remain under pressure against its American rival over the coming year amid ongoing US-China trade issue.

Key Quotes:

“A majority of strategists polled by Reuters expressed caution about the rising yuan and did not expect the recent bullish trend to last without a broader, clearer and permanent deal that rolls back existing tariffs.

According to the Jan 3-9 poll of over 60 strategists, the yuan was predicted to weaken about 1% to 7.0 per dollar in three months and hover around that rate in 12 months’ time.

Views on how the yuan will trade in the year-ahead were somewhat less pessimistic than previous polls.

Twenty-four of 49 common contributors from last month revised their forecasts to show a stronger yuan. Eleven downgraded their outlook. The rest left it unchanged.

That was in line with a separate Reuters poll on currency positioning, which showed bullish bets on the yuan scaled to a near 10-month high.”