CNY to remain under pressure in the coming months – Commerzbank

China’s covid concerns accentuate the souring market mood. Economists at Commerzbank expect the Chinese Yuan to remain under pressure over the coming months.

Covid infections are sweeping across China

“More fiscal and monetary policy easing will come and still be much needed in the first half of 2023 to support growth.”

“Covid infections are sweeping across China following the Covid policy relaxation. Consumption will remain weak and supply chains will continue to be heavily disrupted in the near term.”

“CNY will likely remain under pressure in the coming months before shifting to an appreciation trend again.”