Goldman Sachs says yuan to decline further after the trade tension pause
The investment banks sees USD/yuan to 7.20 in 3 and 6 month time horizons.
- 12 month view is 7.10
- short-lived pauses in trade tensions have in the past given way to renewed escalation rather than a roll-back of the trade war
- If anything, disagreements have spread to more dimensions -- technology, financial flows, immigration and foreign policy -- such that finding ramps to de-escalate is even harder.