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.
