Yuan Remains Undervalued Against Euro Despite Recent Strength, Deutsche Bank Says
Deutsche Bank released a note arguing the yuan remains cheap against the euro even after a recent gain, implying the cross rate may decline as the yuan strengthens toward fair value.
- ▼ Deutsche Bank's valuation research note
- ▼ Recent yuan appreciation failing to narrow the gap
- ▲ Stronger-than-expected US dollar rally
- ▲ Chinese central bank policy shift to weaken the yuan
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What does Deutsche Bank's call mean for EUR/CNY?
The bank's view that the yuan is still undervalued suggests EUR/CNY could decline as the yuan strengthens toward fair value.
What caused the recent yuan gain mentioned in the title?
While the article doesn't specify, recent yuan gains may stem from improved trade data or policy support, but the bank sees it as insufficient.
How likely is the yuan to appreciate further?
Deutsche Bank's analysis implies medium-term upside, but external factors like US tariffs or global risk sentiment could offset.