The Chinese yuan on Tuesday ebbed and flowed against the world's reserve currency in the aftermath of re-opened markets in the Asian nation, Reuters reports.
Following observation of the Chinese Lunar New Year, markets re-opened on Friday and trading has slowly picked up. As has the trajectory of the yuan, which follows the guidance signaled by the People's Bank of China. Some traders told the news source that supply and demand are balanced in the domestic market.
Some economists said the yuan's value will progressively rise as the year proceeds, The Wall Street Journal reports. China last year took on increased capital inflows after the pace slowed down in 2012.
"The free movement of capital is much more likely to result in Chinese capital outflows exceeding inflows, pushing the yuan down and domestic interest rates up," states a report penned by Diana Choyleva of analysis firm Lombard Street Research in London, according to The Wall Street Journal.
Confidence is climbing in China regarding exports and trade surplus data, both of which are likely to benefit the value of the yuan, according to The Wall Street Journal.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
