There has been a lot of talk about the Chinese Yuan these days, Trichet (president of the ECB), Geithner (US Treasury Secretary) and Strauss-Kahn (IMF director), all of them are complaining about the unfair interventions of the Government of Chine in their currency pair. With these interventions China has an unfair advantage, because their products are made cheaper than other products in the rest of the world. This is probably why China has been able to maintain such an impressive growth in the last years.
What is interesting is that this weekend there is a G7 meeting, and guess what they are going to talk about? Of course, the Yuan.
This is just another reason (added to the fundamentals of the week: NFP, interest rates, etc.) I’d suggest you to trade with cautious. Myself, I’m going to resume my trading next Tuesday, but will keep an eye open to the markets today and tomorrow.
Did you notice the USDJPY is trading at 15 years low, and also the AUDUSD at historical highs??? Interesting isn’t it?
Tags: Chinese Yuan