A major Wall Street institution just dropped an interesting call on the yuan. They're saying it's sitting about 25% below where it should be—pretty significant undervaluation by any measure.

What caught my attention? Their forecast suggests the currency's got more upside than what the forwards market is currently betting on for 2026. That's a meaningful gap between institutional outlook and market pricing.

The disconnect here matters. When one of the biggest players in traditional finance sees this kind of mispricing, it usually means they're positioning accordingly. Whether you're watching capital flows or tracking how currency moves impact broader asset markets, this type of divergence is worth noting.

Forwards aren't reflecting the full appreciation potential, at least according to this analysis. Could be an interesting setup going into next year.