Chinese yuan is heading lower.
Updated
US-China tariff war is killing China as it is the factory of the world. Look around you, how many things says 'made in china' on it? What does that mean?
It means obviously China's economy is heavily relying on exports.
Like what's been written on zerohedge here.
'In this context, a Sino-American trade war is not only most unwelcome but also untimely. In July, the U.S. implemented a new 25% tariff on $50 billion of imports from China. U.S. President Donald Trump threatened to increase the tariff rate from 10% to 25% on a further $200 billion of imports from China if the latter retaliated (which it did), and even subject all $500 billion or so of annual imports to tariffs. Beijing's riposte was to threaten variable tariffs on an additional $60 billion of imports from the U.S.
Since China only imports about $150 billion of goods from the U.S., the scope for its own tit-for-tat tariffs is almost exhausted. If it wants to continue hitting back at the U.S., it will have to resort to some combination of currency depreciation and the use of its extensive system of regulations to target U.S. products and companies doing business in China. As far as depreciating the yuan is concerned, the Chinese authorities are moving into dangerous territory.'
Source : zerohedge.com/news/2018-08-09/george-magnus-fears-looming-threat-yuan-depreciation
8% of depreciation is nothing, more is about to come.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
It means obviously China's economy is heavily relying on exports.
Like what's been written on zerohedge here.
'In this context, a Sino-American trade war is not only most unwelcome but also untimely. In July, the U.S. implemented a new 25% tariff on $50 billion of imports from China. U.S. President Donald Trump threatened to increase the tariff rate from 10% to 25% on a further $200 billion of imports from China if the latter retaliated (which it did), and even subject all $500 billion or so of annual imports to tariffs. Beijing's riposte was to threaten variable tariffs on an additional $60 billion of imports from the U.S.
Since China only imports about $150 billion of goods from the U.S., the scope for its own tit-for-tat tariffs is almost exhausted. If it wants to continue hitting back at the U.S., it will have to resort to some combination of currency depreciation and the use of its extensive system of regulations to target U.S. products and companies doing business in China. As far as depreciating the yuan is concerned, the Chinese authorities are moving into dangerous territory.'
Source : zerohedge.com/news/2018-08-09/george-magnus-fears-looming-threat-yuan-depreciation
8% of depreciation is nothing, more is about to come.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Trade active
horizontal line is broken now, note 6.83 was the level that sustained for over 2 years starting by Sep 2008 to May 2010.Trade active
This one is playing out nicely.
YouTube goo.gl/BkRuQL
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