Warn of possible shock because of the more expensive yuan

Viliyana Filipova — Wed, 27 Jan 2010 11:35:43 +0000

The U.S. market analysts predict a new shock to the markets. After Obama’s intentions to repair the banking system radically, according to them, now it is time for China to throw bombs in markets. This time, however, no room for panic, because it is forecast that China will take once an increase in the value of its currency. This should give a strong impetus to the markets, as can be extremely useful for most economies in the world. At this stage, however, nothing is certain, so do not make the mistake to trust fully the hearing, Brian Kelly warns of Kanundrum. “Many foreign exchange traders talking about this for quite some time, but so far nothing like that has happened,” he said. Kelly himself believes that it is very likely to happen. “There are political and economic will in China to do so, he believes. “From an economic standpoint, if inflation continues to grow, they will be most useful to let the yuan to rise and to suppress growth in prices. Purely political, such a decision would simply make the situation of China to the world a favor, “he said.
In the event that the analyst be right, it can be expected strong performance of stock indexes around the world. The reason for this is that foreign producers of goods will become more accessible to the 1.3 billion Chinese.

Financial Communique » communique

Warn of possible shock because of the more expensive yuan