Dollar Reversal Case Building Up after China Induced Volatile Week China's devaluation of its currency was the main theme last week and rocked the financial markets. An important interpretation of the move was the more serious than expected trouble that the country's exports were facing. Slowdown in the economy could be even worsened further by the stock market crash back in July. Aussie and Kiwi ended the week as the weakest major currency due to its close trade tie with China. Meanwhile, even though, crude oil extended recent down trend and made new six year low, Canadian dollar was relatively less affected. Weakness of the Loonie was indeed overwhelmed by dollar as there were speculations that Fed would delay September's rate hike. Meanwhile, European majors ended the week generally stronger with Euro being the strongest. Full Report Here... |
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