To market conditions that counts the most.
Some financial analyst and news commentators have some how stated in passing that President Trumps words about the FED rate hikes and other trading partner countries with the US was interpreted as an indirect 'verbal intervention' that ended a USD sell off on the last trading day for the week.
In our perspective, for now a lot of these 'Market Misdirection' have given ample relief for the currency & commodity markets to recoup what was previously lost while US equities remain steady amid all these news report, including Trump and Putin's Helsinki meeting.
Let's face it, with the US unfair disadvantage in global trade deals as persistently claimed by Trump, the Chinese Yuan would remain at odds with the US Dollar when it comes to the foreign exchange rates as it still limits its market in spite of being so called more open policy. But for as long as Japan weighs in and is aligned with the US trade policy it would serve as a secondary buffer / counter-weight that could balance-out with China's attraction for a weaker or competitive global Yuan policy.
Comparative Price Action Analysis: USD Vs. CHINESE Yuan & Japanese Yen
Some financial analyst and news commentators have some how stated in passing that President Trumps words about the FED rate hikes and other trading partner countries with the US was interpreted as an indirect 'verbal intervention' that ended a USD sell off on the last trading day for the week.
In our perspective, for now a lot of these 'Market Misdirection' have given ample relief for the currency & commodity markets to recoup what was previously lost while US equities remain steady amid all these news report, including Trump and Putin's Helsinki meeting.
Let's face it, with the US unfair disadvantage in global trade deals as persistently claimed by Trump, the Chinese Yuan would remain at odds with the US Dollar when it comes to the foreign exchange rates as it still limits its market in spite of being so called more open policy. But for as long as Japan weighs in and is aligned with the US trade policy it would serve as a secondary buffer / counter-weight that could balance-out with China's attraction for a weaker or competitive global Yuan policy.
Comparative Price Action Analysis: USD Vs. CHINESE Yuan & Japanese Yen
One of the best trading strategy applied in relation with a defined trend direction that can be referenced with the chart reflecting the CNHJPY Cross rate. Which is in fact the inverse reflection of the chart below.
The basic analogy in the market is that, whenever there is a persistent price consolidation period and a TUG of WAR existing between bulls and bears investors needs to follow the old classic rule in trading where the prevailing trend normally gets back on its original track.
A 'Market Misdirection' indeed, as US Equites are again in triple digit moves even US Treasuries is at 2.97% to this writing. While the DOW at 25185, SP500 at 2821, NASDAQ at 7863 respectively.
ReplyDeleteAs a result of the US China Trade war, Japanese stock market has finally overtaken the Chinese stock market as it drifts lower from the trade jitters. For now, China's stock market investors are loosing value with the US imposing additional tariff on Chinese goods to the US.
ReplyDeleteNot a lot would appreciate how President Donald Trump's move imposing additional tariff on China. What's behind these move is far more than simply protectionism. As an added bonus made mention in our previous market analysis shared information.
ReplyDeleteJapan has a pivotal role in balancing global trade where China asserts itself with other countries as well. That is why Japan's presence in the Philippines is indeed a welcome trade
strategy that can only assist the Philippines moving forward.
As a result of the US China Trade war, Japanese stock market has finally overtaken the Chinese stock market as it drifts lower from the trade jitters. For now, China's stock market investors are loosing value with the US imposing additional tariff on Chinese goods to the US.
The Real Trading Places: #China dethroned by #Japan as world's second-biggest stock market
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https://www.bloomberg.com/news/articles/2018-08-03/china-dethroned-by-japan-as-world-s-second-biggest-stock-market via @markets