Archive for chinese yuan

China vs. Japan vs. U.S. and Yuan

News that China surpassed Japan as the world’s second largest economy is one of the biggest stories in the financial markets. For more than 4 decades, the only country with a larger economic output than Japan was the U.S. However over the past 20 years, the Japanese economy stagnated, giving China the opportunity to [...]

Impact of Last 3 China Rate Hikes on FX

With each Chinese rate hike, there has been a smaller and smaller impact on the currency market. The first rate hike back in October elicited the biggest reaction because it was the first rate hike in nearly 3 years. At the time, all of the pro-cyclical currencies plunged against the U.S. dollar with [...]

Impact on FX: What if China Raised Rates?

Everyone is talking about the possibility of China raising interest rates. What if they did? How could it impact currencies?
In October, the PBoC surprised everyone by raising interest rates for the first time since 2007. At that time, we said the central bank rarely makes one off changes and we believe [...]

CNBC Interview: Outlook on Asian Currencies

I was on CNBC Squawk Box Asia last night talking about all things Asia including the outlook for Japanese Yen, Korean Won and Chinese Yuan.
Here is the clip if you missed the segment

China’s Currency Tango

I was on the Canadian Broadcast Network last night talking about the outlook for the Chinese Yuan. Click on the image to access the video

Reaction to Australian Rate Hike, Outlook for Canada Rate Decision

I was on the Business News Network this morning talking about my reaction to the Australian rate hike, the IMF’s report on Chinese Yuan undervaluation and my outlook for the Canadian rate decision
Click on image to access the video

China’s Dollar Trap

Here is a very well written article about China’s predicament with the U.S. dollar and explains why they won’t be talking down the dollar anytime soon:
From the Weekly Standard
The Dollar’s New Best Friend
Beijing warms up to the greenback–because it has to.
by Gordon G. Chang
Last Tuesday, Brazil, Russia, India, and China–the so-called BRIC nations–met in Yekaterinburg, [...]