USD/CNY seen lower at 6.70 over 12 months – Goldman Sachs

In an interview with CNBC, Goldman Sachs’ co-head of global foreign exchange, Zach Pandl, offers his upbeat outlook on the Chinese yuan over the long-term.

Key quotes

“Health of the Chinese economy, the domestic picture in China looks pretty solid.”

“China pretty good rebound from the coronavirus pandemic.”

I think we need to recognize that the US dollar is a safe-haven and tends to go up against almost all currencies when the global economy's turning over. If we find out that we don't really have the virus under control, we're going back into a double-dip recession ... that would be major risk for all our currency forecasts.”

“The relationship between Beijing and Washington ahead of elections in November. “