Currency, China, catch up...

The currency move today by China is more of a catch up move with its global competitors.  All free-floating currencies, including ours, have been dropping against the USD, and the Chinese just played a big catchup move in order to make exports more competitive.  Global businesses with large sales in China will suffer a little bit, and importers from China will see a bit of help in cost reductions.  We do not see this move in currency as something that will kill the bull market, or something that will truly hurt the US economic recovery.

 

Here is the Yuan move lower against the USD, in the last year, it is a sudden movement and has shaken the markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Bloomberg

 

Here is the Euro Vs the USD over the last year:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Source: Bloomberg

 

Here is the Japanese Yen vs the USD over the past year:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Bloomberg

 

Finally, here is the USD ascension against it’s global peers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Source:Bloomberg

 

 

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