# USD/CNY: We expect the bullish trend to continue - Danske Bank — Octa

> Danske Bank says USD/CNY jumped to its highest level in six years, near 6.72, after trading resumed following the Chinese holiday. The bank views the move as business as usual and expects the weakening trend to continue, with a 12-month target of 7.1. It cites slowing growth, high debt, rising US rates, negative FDI flows and financial crisis risk.

- Date: 2016-10-11 · published 2016-10-11T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/5890-usd-cny-we-expect-the-bullish-trend-to-continue-danske-bank-octa
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A forecast for a sustained weaker yuan would reduce Chinese import purchasing power for feed commodities over the coming year. The effect on feed prices depends on whether the trend materializes.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2016-10-11 | 1 | +0.8% | 5.7 | USD/CNY jumped to a six-year high near 6.72 when onshore trading resumed after the holiday, which describes the move in question and reflects bearish sentiment on the yuan. |
| USDCNY | 2016-10-17 | 5 | +1.0% | 2.8 | USD/CNY jumped to a six-year high near 6.72 on resumed trading, and the bank's bearish yuan outlook reinforced depreciation sentiment. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-06-23 | [USDCNY likely to continue heading higher – SocGen — Octa](https://feedsoft.ai/events/10885-usdcny-likely-to-continue-heading-higher-socgen-octa.md) | +0.9% | +1.5% |
| USDCNY | 2020-04-02 | [USD/CNY: Expected to reach 7.15 on a three-month horizon – Nordea — Octa](https://feedsoft.ai/events/53881-usd-cny-expected-to-reach-7-15-on-a-three-month-horizon-nordea-octa.md) | -0.5% | -0.3% |
| USDCNY | 2021-08-10 | [USD/CNY to recapture the 6.50 level as yuan changes its appreciation trend – ING — Octa](https://feedsoft.ai/events/45787-usd-cny-to-recapture-the-6-50-level-as-yuan-changes-its-appreciation-trend-ing.md) | -0.2% | -0.3% |
| USDCNY | 2024-07-26 | [CNY: No turning point – Commerzbank — Octa](https://feedsoft.ai/events/29508-cny-no-turning-point-commerzbank-octa.md) | +0.2% | -1.2% |
| USDCNY | 2022-07-18 | [USD/CNY: Yuan-pessimistic view gains adepts – Commerzbank — Octa](https://feedsoft.ai/events/40704-usd-cny-yuan-pessimistic-view-gains-adepts-commerzbank-octa.md) | -0.1% | -0.2% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/370719/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.