That's a quote, eventually. Their forecast is for USD/CNY to 7 in Q4 2019 and USD/CNH above 7, also in Q4 2019.

Key points from the report containing the forecasts:

  • it appeared the Enforcement Mechanism undid the US-China Trade Deal
  • But adding Huawei into the mix will make reaching a Deal even more difficult
  • Short-terms politics suggest stalemate
  • Trump thinks China escalation is a political winner for him in 2020
  • China's collective leadership is not willing to do business on Trump's terms; they have partially unleashed nationalism
  • We think growth and credit drivers of RMB remain largely as before, but interest differentials are more yuan supportive
  • the stalemate stretching out RMB depreciation

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MUFG Bank is Japan's largest bank