USD/CNH: Will gradually rise

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USD/CNH fell to 7.16 after approaching 7.30 in early July, and EUR/CNH fell to 7.88 from a recent peak of 8.10.

Expect EUR/CNH to trade lower to around 7.60-7.70 in 12 months

I still think USD/CNH will gradually move higher, as China will adopt more loose monetary policy, while the Fed still has a tendency to tighten monetary policy for now.

However, EUR/CNH is expected to trade lower to around 7.60-7.70 within 12 months, underpinned by our forecast for further EUR/USD declines.