قالب وردپرس درنا توس
Home / Business / China trade data helps to keep calm in the markets, but can the mood stay in the run?

China trade data helps to keep calm in the markets, but can the mood stay in the run?



Markets are much calmer today amid a slightly stronger yuan fix from PBOC and better Chinese exports in July

  China

ForexLive

Risk assets may find some reprieve so far today over the above events with Chinese trade data which again shows that exports are holding pace despite the global slowdown and ongoing trade tensions with the US.

While there are positive takeaways for risk, the question is how long can things last this way? Especially when the prospects remain more blurred and uncertain.

The above trade data continues to mark weak and dampened domestic demand as imports are still struggling. China's trade surplus to the United States is also increasing, raising further concerns about the trade dispute between the two countries.

general trading conditions in larger picture.

Even the yuan fix earlier today is hardly convincing about anything positive in my view. It has been clear in recent days that China will not allow the currency to weaken rapidly. As such, by leading markets past the $ 7.00 threshold, they can trade more freely now to keep a weaker yuan in the middle of the trade war.

It is not good for international markets that we should see some appearance of a kind of currency war between countries around the world.

Against this background, I do not see how it is positive for risk in the bigger picture, and it will certainly come back to bite on the risk weights sooner rather than later.


Source link