This
sharp depreciation in the Chinese currency is worrying investors. In August
2015, USDCNY appreciated from 6.21 to 6.44, a two-day gain of 3.85%. As a
result, global stock markets sold off sharply as investors feared the beginning
of a currency war. With trade tensions increasing day by day, Beijing might be
playing this game as a tool in its trade war with the U.S. However, such a
strategy will be a double-edged sword as it might also lead to a flight of
capital which the PBoC is well aware of.
Although
the Chinese currency depreciated 3.23% in June, it didn’t sound quite so
alarming, given that the Dollar appreciated against most major currencies in
May and June. Going forward it’s going to be about the pace and magnitude of
the currency moves that will drive equity markets. CNYUSD traded at 6.70 at the
time of writing and will keep a close eye on 6.96, the lowest level reached in
January 2017.
Caution
is warranted at this current stage, as the ongoing trade dispute moves from
announcements to implementations. Canada confirmed over the weekend that it had
imposed tariffs on U.S. exports worth 16.6 billion CAD. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
The U.S. is set to impose a 25% tariff on up to $34 billion of Chinese products
on Friday. Meanwhile, there are reports that the European Commission will
impose tariffs on nearly $300 billion on U.S. products if President Trump
targets the European auto industry. This sounds like a serious trade war!
Major
currency markets were steady early Tuesday with the Euro, Pound, and Yen
trading in narrow ranges against the dollar. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
The economic calendar doesn’t hold tier one data today, but it’s worth watching
the Eurozone retail sales figures after consumer confidence dipped to its
lowest level since last October and Oil prices are making another attempt to
reach $80.
Oil
bulls seem to have returned after Libya suspended Oil exports from two key
ports. If Libya’s Oil doesn’t return fast to the market it will be an important
test to OPEC’s spare capacity, especially given that output from Venezuela and
Iran is expected to fall significantly in the next couple of months.
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
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