Goldman Sachs has raised its forecast for China’s yuan

Goldman Sachs forecasts USD/CNY to dropping to

• 7.20 in 3 months
• 7.10 in six months
• 7 over the next 12 months

Goldman Sachs sees China’s exports remaining strong.

• “The undervalued levels of the currency, both on a real trade-weighted basis but especially versus the dollar, all point to the possibility for a stronger onshore yuan as a potential offset to tariff reductions”

Info comes via a Bloomberg (gated) piece on a GS note on Friday.

This article was written by Eamonn Sheridan at www.forexlive.com.