- China worried about long-term impact of budget cuts in west will hurt growth
- More cautious about ending fiscal stimulus due to Europe woes
- China thinks yuan has never been closer to equilibrium level
Still 40% under-valued, but never been closer to equilibrium! Kinda like saying I’ve never been closer to being 7-feet tall…
EUR/USD is near the upper end of the days range, underpinned by solid risk appetite despite stubbornly high jobless claims. Traders say yesterday’s pullback in US equities could have been much worse and are taking comfort in the mild dip.
