China Currency

US Dollar, Economic Influence, Waning on Global Stage

The rebuke and rejection of the request by the U.S. to pressure China to into increasing the value of the renminbi by the G-20 underscores the declining economic influence of America in the world, as well as the U.S. dollar, which has become a disaster. Not only was the idea of pressuring China on their currency rejected, but the U.S. and the disastrous Federal Reserve were castigated by

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China Warns of Currency Depreciation

Filed in 1099, China Currency, euro, New Gold, Yen, yuan by on September 4, 2010 0 Comments
China Warns of Currency Depreciation

Filed under: China , Market Matters , Currency China’s currency reserves are estimated at $2.45 trillion dollars. While hard data is a state secret, some information was obtained from the China Security Journal and reported by Reuters. Roughly 65% of China’s currency reserves are in U.S. dollars, 26% in euros, 5% in pounds and 3% in yen. With such a huge sum outstanding, Chinese officials are afraid of depreciation. Hu Xiaolian, vice governor of the Peoples Bank of China, writing in China Finance said: “Once a currency’s value becomes unstable, there will be quite large depreciation risks for assets.” Continue reading China Warns of Currency Depreciation China Warns of Currency Depreciation originally appeared on BloggingStocks on Sat, 04 Sep 2010 09:40:00 EST. Please see our terms for use of feeds . Read  |  Permalink  |  Email this  |  Comments

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How Commodity Charts Are Reacting, or Not, to China Currency News

News that China will re-value its yuan currency is viewed positively, of course, by world markets as it lowers inflation risk and exudes confidence about China’s growth picture. After an initial higher opening on Monday, what can be expected? The daily chart on the Shanghai is hardly a bullish chart, and in fact went down 3% on Friday. Does the news now invalidate this chart? I don’t know, but to even begin to look exciting, the index has to take out 2600, or 3 1/2% from Friday’s close at 2514, and then faces stiff resistance at around 2800. The S&P 500, meanwhile, needs to get through its 50% Fibonacci retracement of the April-June decline, which comes in at 1130, and then take out its 50-day moving average at 1139-40, or 2% from Friday’s close. If it runs out of gas at the 50% Fib retracement, then it might well test the 200-day moving average at 1110. One thing for sure is that if the Chinese situation is the bellwether of a start of a new up-cycle in the global economy, or the renewal of an up-cycle, then commodities will have to move. So, let’s take a look at the commodities. Copper and Gold Looking first at the copper situation, the iPath DJ-UBS Copper TR Sub-Idx ETN (JJC) appears to have a very big distribution top pattern with the resistance level at around 38.56 upwards to about the 42.83-43 zone. If the market is supposed to be a discounting mechanism, then it would seem as though copper would have made a move near the 40.16-40.86 area. Instead, copper had a very tough Wednesday, Thursday, and Friday of last week, and seems to be struggling. In addition, it’s below its relative moving averages, and in fact, those who watch the 200- and 50-day interaction are seeing a kind of death-cross happening, where the 50-day is about to cross under the 200-day, which is a very tricky situation. It seems as though copper, as a discounting mechanism, did not see the Chinese situation coming or it would have been prepared, since the Chinese would have been buying up copper before they made the announcement. Copper needs to show some sign that global supply/demand and global growth is improving, and right now that’s not what the chart is showing. Freeport-McMoRan Copper & Gold Inc. (FCX) shows a very similar picture. In the last couple weeks FCX has pretty much struggled because it’s seen as a copper producer in a sluggish US and global economic environment. To get any traction on the upside, Freeport will have to take out 71.50, or 8 1/2% above where it closed…

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US delays China currency report

Filed in China Currency, Gold Investing, yuan by on April 3, 2010 0 Comments

The US Treasury is delaying by several months a report on whether China manipulates its currency, the yuan.Treasury Secretary Tim Geithner said he would delay the report, which was due out on 15 April, until after a series of high-level internationa US delays China currency report

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China, U.S. Currency War Escalating

China shot off its own response to the aggressive comments by some American politicians and business leaders over the alleged idea that they are manipulating their currency to their own advantage.With political pressure in the U.S. mounting, this could turn into an unpleasant and unprofitable dispute for both countries, with the U.S. having the most to lose. Some business groups claim the yuan is

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China Currency & Trade

Filed in China Currency, Gold Holdings, Gold Investing by on March 16, 2010 0 Comments

U.S. Treasury wants China to raise its currency and Senators are back with a protectionist trade threat against China, with Andy Busch, BMO Capital Markets and John Rutledge, Rutledge Capital. China Currency & Trade

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Eldorado Gold (NYSE: EGO) Chinese Currency Exposure

Any time and company enters a foreign market, they gain exposure to flucuating value in the nation’s currency, and that’s the case with Eldorado Gold (NYSE:EGO) when they entered the Chinese market in 2009 via the acquisition of Sino Gold Mining in China. While a small change in the value of the reminbi wouldn’t have a significant effect on Eldorado Gold, a major move definitely would. But

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