In today's notes we discuss the ongoing deflation threat in China, higher inflation outcomes in Australia and Canada, and some thoughts on the Dollar ahead of tomorrow's US pce number.
It seems to me that Xi is caught in a vice between his desire to demonstrate the CNY is a stable currency and a viable alternative to the dollar and his need for the CNY to weaken to support the ongoing slowdown in the economy. it will be interesting to see how much pain he can withstand before allowing it to weaken further
It seems to me that Xi is caught in a vice between his desire to demonstrate the CNY is a stable currency and a viable alternative to the dollar and his need for the CNY to weaken to support the ongoing slowdown in the economy. it will be interesting to see how much pain he can withstand before allowing it to weaken further