The firm says that it sees a 'wild' unwinding of long CNH, CNY positions
They attribute the position unwinding due to two factors.
The first being that "the risk of there being no trade deal has escalated remarkably at this juncture" and the second factor being that volatility in USD/CNY is set to take off due to massive uncertainties surrounding trade talks.
In that lieu, the firm still maintains its USD/CNY forecast by year-end of 6.90. In case you missed it earlier, BofAML argued that the pair could be headed towards 7.00 if the US follows through with tariffs against China.