Bloomberg survey: CNY midpoint market forecast average is 7.2054

Bloomberg survey: CNY midpoint market forecast average is 7.2054

The latest Bloomberg survey indicates that the market's forecast for the Chinese Yuan (CNY) midpoint is averaging at 7.2054. This prediction, based on the survey conducted on July 2, 2025, reflects a stable outlook for the currency despite ongoing geopolitical tensions and trade uncertainties.

The survey data suggests that while there are varying opinions among economists and financial professionals, the majority of respondents expect the CNY to hover around the 7.20 mark. This level is supported by the Chinese government's efforts to stabilize the currency and maintain a balanced trade relationship with its trading partners.

The survey results also highlight the impact of recent economic developments and central bank policies on the CNY. For instance, the People's Bank of China (PBoC) has been actively managing the currency to prevent excessive volatility and maintain stability. Additionally, the ongoing trade negotiations between China and the United States have influenced market expectations, with the US-China trade deal potentially reducing uncertainty and supporting the CNY.

Furthermore, the survey underscores the importance of economic fundamentals in shaping market expectations. Factors such as inflation, interest rates, and trade balances play a crucial role in determining the value of the CNY. The survey's findings suggest that investors and financial professionals are closely monitoring these variables to inform their predictions about the currency's future trajectory.

In conclusion, the Bloomberg survey provides a snapshot of market sentiment regarding the CNY. The average forecast of 7.2054 reflects a balanced view of the currency's potential value, influenced by various economic and political factors. As the survey results indicate, the CNY is expected to remain stable, with market participants closely monitoring the ongoing developments that could impact its value.

References:
[1] https://www.marketscreener.com/news/xpeng-s-july-deliveries-surge-229-ce7c5fd2db8ff422
[2] https://newsquawk.com/headlines/newsquawk-central-bank-weekly-25th-july-2025-previewing-fed-boc-boj-sarb-reviewing-ecb-pboc-lpr-rba-minutes-cbrt-25-07-2025