Top
New York  London  GMT  Tokyo  Sydney 
Browse > Home / All, Asia / President Obama will raise currency topic with Chinese

President Obama will raise currency topic with Chinese

By   || November 9, 2009 at 22:30 GMT
|| 7 comments || Add comment

US President Barack Obama is being interviewed over Reuters newswires. He says that currency valuations are among the factors which have added to global imbalances and that the Yuan currency issue will come up in talks with China. He says that China is becoming increasingly interested in finding a long-term sustainable growth model and that the success of the US is very important to China, given the size of their US-assets holdings.

If this Yuan-revaluation talk continues over the next few days the market will probably use USD/JPY as a proxy trade as this is what it has done in the past.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • LinkedIn
  • email
  • Print
  • Add to favorites
  • del.icio.us
  • Digg
  • NewsVine
  • StumbleUpon
Category: All, Asia
Tags: , , ,

Add a comment

7 Responses to “President Obama will raise currency topic with Chinese”

  1. ISCA on November 9th, 2009 22:46 GMT

    Very interesting, Sean, but what do you mean use usd/jpy as a proxy? I would have thought yuan reval talk would be generally dollar positive. I presume, btw, that you were stopped out of your cable short. Shame if so.

  2. lilac on November 9th, 2009 22:55 GMT

    Guess you’re not a pokemon fan then ISCA .

    Apparently it’s all about trading a a Mystery Mew for another person’s Wishmaker Jirachi ;)

    http://pokemonfan.net/wireless-mechanics/wmproxies.html

  3. ISCA on November 9th, 2009 23:00 GMT

    I fear Lilac that both Pokemon and your comment are beyond my understanding…and I am now heading off to dreamland. A good night to those heading that way and a good morning to the southern fraternity…

  4. lilac on November 9th, 2009 23:02 GMT

    Anyway, this seems to be hot off the press

    http://www.guardian.co.uk/environment/2009/nov/09/peak-oil-international-energy-agency?CMP=AFCYAH

    Key oil figures were distorted by US pressure, says whistleblower

  5. lilac on November 9th, 2009 23:03 GMT

    Sleep tight ;)

  6. Sean Lee on November 9th, 2009 23:05 GMT

    Hi ISCA, if the Yuan is revalued against the USD then it strengthens and the USD weakens. As USD/CNY is difficult to trade for the mainstream market as they cannot access NDF’s (non-deliverable forwards) then the market will tend to use USD/JPY as the closest equivalent and sell that instead. I’m not saying it’s logical, just the way it is. USD/CNY currently trades in a band and it’s towards it’s lower edges now at 6.82ish. Some will argue that a more reasonable rate is half of that, ie 3.50ish for the USD/CNY. Were we to be fully convertible at that level then the world would not be encountering all the imbalances that we currently are. Unfortunately it is not as easy as just revaluing/devaluing a currency as we all know. All of this could of course be USD+ aganist other majors

  7. Sean Lee on November 9th, 2009 23:08 GMT

    Txs Lilac, and sorry but the Pokemon bit totally missed me too. I’ll ask my 13-year old. Cheers+++

Bottom