FxWirePro: Yuan to strengthen further targeting 6.61 per USD

Yuan is all energized against the USD,

• After consolidating in a tight range (6.73-6.81) against the USD over the past five weeks, USD/CNH is sharply heading lower this week to test the lowest level (6.70 per USD) since September last year.
• The current broad-based weakness in the USD coupled with optimism over Sino-American trade negotiations is fueling Yuan’s ride.
• The momentum strongly suggests that yuan would not only test the above-mentioned level but break lower to reach as high as 6.61 per USD.
• The sharp drop in consumer spending in December in the United States is weighing on the USD, However, we remain bullish on the USD over a longer horizon and expect the current weakness to be temporary.