The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
China’s exports hit record high
2020-12-07 • Updated
China published the better-than-expected trade balance, signaling the country’s steady recovery. The trade surplus surged to 75.4 billion dollars, while the forecast was 53.8 billion dollars. It was the largest monthly increase in the whole history of China! The strong trade growth can be linked with the severe lockdowns in other parts of the world. These countries need a lot of equipment for medical staff and ordinary people, which is made where? Of course, in China.
However, it isn’t so good as it seems. The widespread vaccinations will rotate the world’s demand for services as social-distancing restrictions will be canceled. As a result, the demand for China’s exports may be reduced. By the way, the Chinese yuan is showing the best performance against the US dollar since 2014. If it continues appreciating, one day China’s goods will be too expensive for overseas buyers. However, all these risks are log-long-term, and they may significantly impact the yuan only in the second half of the next year.
The short-term risk is Sino-American tensions. Donald Trump’s administration is planning to impose sanctions on Chinese officials over the Hong Kong crackdown. According to Steptoe and Johnson, “it’s unlikely the Biden administration will roll back sanctions that are politically popular in Washington. Trump-era sanctions could become sticking points in the US-China relationship for years to come”.
USD/CNH is moving in a downtrend. However, the price is touching the lower trendline and the lower line of Bollinger Bands, we can assume that the pair has the potential to rise to the resistance of 6.5800. The move above this level will drive the price to the high of November 11 at 6.6250. Support levels are 6.5000 and 6.4500.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
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Over the last couple of weeks, GBPUSD and a few other commodities have breached their recent swing highs and lows, while some have even gone on to create new All-Time Highs and Lows
A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.