USD/CNY likely to hit 6.90 mark; not much volatility seen ahead of G-20 meeting, says Commerzbank

The USD/CNY currency pair is expected to hit the 6.90 mark, although not much of a volatility is likely to be seen ahead of the G20 meeting in Osaka, Japan, according to the latest research report from Commerzbank.

It is reported that the US will delay new tariffs on the remaining USD300 billion worth of Chinese goods, as the two nations are preparing to resume the trade talks after the G20 meeting. The decision could be announced following the Trump-Xi summit.

Nonetheless, the US is unlikely to fulfil China's demand to remove the existing tariffs before the new talks. In the FX market, CNY got a hit yesterday as three Chinese banks were reportedly under a probe by the US regarding possible breaches on North Korea sanctions.

Meanwhile, the three banks involved all issued statements yesterday afternoon saying that they were not under investigation for sanctions violations.