The moment that Europe and the U.S. have been lobbying for over the past nine months finally arrived, as China ended the rule based exchange rate “peg” of the Renminbi, or Chinese Yuan, to the U.S. Dollar. While the immediate implications of a floating Yuan are positive for Asia as a whole, the mid-term reprocussions of a stronger Renminbi may tell a starkly different tale.
As the ill-effects of a global financial crisis became evident to world leaders in late fall 2008, export driven economies with surplussed coffers of U.S. dollars did the obvious. They used the cash to stimulate their economies. In one specific nation, the Premier’s words fell like heavy boots on an ant hill, as decrees began to waterfall down from superiors to
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On a positive note for Japan, export growth in December surprised economists by growing at 12.1%, compared to the 7.6% forecast, for the first time since the collapse of Lehman in 2008. Breaking down the numbers, analysts were equally unsurprised to learn which market was responsible for the rapid growth. If I’m hitting my target
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The world has followed Obama's recent visit to Asia, especially his visit to China, with hopes that Asian currencies would be allowed to appreciate over the short term. China's Renminbi has been re-pegged to the U.S. dollar since mid 2009 and should be allowed to appreciate vs. the dollar, as every major currency has over
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Amidst all the hypotheses and strategies of guys like myself "probing for profits", the most recent security to have stolen the limelight must be currencies. It's no secret that the U.S. Dollar has been falling against nearly every major currency throughout the world over the past six months, however it's soon to become a bigger issue,
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The five day trading week spanning November 16-20, 2009 will leave few stones unturned as the current economic strength is weighed and measured via the Retail Sales, Industrial Production, New Housing Starts, and Leading Indicator reports. Retail Sales The September report showed negative growth in total sales on the back of a massive pullback from the
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The below video was simply too shocking to not have a post dedicated to it's exposure… This clip truly tells the story of Chinese growth and government stimulus in one stroke. Suprisingly, in the development void of inhabitants, most units have sold as investments. Government owned, the city doesn't have to worry about the negative effects of waiting
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Summing up the pieces that have lead us to the strange "here and now" in global financial markets may produce a different result for each market practitioner, yet there are truths agreed upon by most worth mentioning. The purpose of this article is to identify some truths and un-truths, which will provide a fresh slice
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