Positive outlook on currency value of China to the dollar
The latest forecast on the value of China’s currency suggests that the yuan may rise by 2% in the near future. This is the analyst of Bank of America Merrill Lynch. The key factor in the growth of currency will be the meeting of the main persons of the USA and China in Davos: President Donald Trump and Vice President Wang Qishang, respectively.
What is the forecast for currency value based on?
In early 2019, the Bank of America Merrill Lynch experts actively recommended investors to buy a yuan. As an argument, bankers cited the fact that China’s policy would limit the rise of the dollar against the yuan less than 7.00 to prevent future aggravation in the trade wars between China and the United States. It was also reported that in the future the transaction will open the way to another decline in the yuan, and in the fourth quarter of 2019 for one yuan, it will be possible to gain almost $ 7.
Trade representatives of the States and the Middle Kingdom in early January, sat down at the negotiating table. This happened for the first time since the conclusion of the 90-day truce. According to analysts, the results of communication should have been concessions in trade duties, whose size has a strong impact not only on the economies of the two superpowers, but also on other financial markets.
Problems the pound in Japan
In Japan, currency unrest also occurs. The local bank, Nomura, in mid-January 2019, quit the pound trading just before the UK’s Brexit vote.
Withdrawal happened with a moderate profit in the region of 0.9000, which was dictated by the expectations of the outcome of the Kingdom’s decision to withdraw from the European Union. Bankers said that after the end of the voting and a more accurate understanding of the possible development of events, they would again consider options for entering long positions on the pound.
