As the bilateral trade spat between the United States and China has haunted the world and the economies involved for as long as 15 months now, the trade war is finally seeming like it might just end and this optimism has been very good for the trade between the nations and has changed the perspective of the markets in a way that we thought would never happen.
But this did happen, and the United States and China have started talking about sorting out this trade war that has been going on. This optimism on trade war ending has sent up the Chinese currency Yuan on a rise rally, and this rally part is aided by some more Asian currencies. This is due to the rise in investor sentiment and confidence, which has been lost from the Chinese markets ever since it started the trade spat with the US. Broader risk appetite can also be noted across a range of asset classes that are a result of the trade talks between the nations, including US stock markets reaching new record-highs and commodity-linked currencies, such as the Australian Dollar approaching levels close to near 3-month highs which is a good news as the dollar funding reliability will be decreased by a good amount if this continues.
So as the currencies strengthen, we expect to see more growth as the currencies are capable of pulling, and if this happens, it would be great for the world economy and might get even and stop the slowdown.
Tags : Currencies, United States and Chin, Australian Dollar, Chinese markets ,