Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The yuan is getting cheaper amid the return of Trump


October, 24 2024
watermark Economic news

The yuan is feeling a strong influence caused by the return of Donald Trump to the US political arena. Negative expectations in the market arose due to Trump's programs to increase trade tariffs on Chinese goods. 


These fears are reinforced not only by speculators, but also by the actions of exporters themselves, who prefer to stock up on dollars in anticipation of possible trade conflicts.


The yuan showed a slowdown in growth and decline in early 2023, influenced by the unstable economic situation in China and weak demand. In this regard, the stock markets of the Middle Kingdom face uncertainty, since Beijing's large-scale plans to stimulate the economy may be under threat if Trump wins.


In three weeks, the yuan fell by about 1.5%, which was the sharpest drop in the last year. Analysts believe that further weakening of the yuan is expected in the coming months if Donald Trump returns to power and Republicans gain control of Congress.


Also, a decrease in bond yields in China has a negative impact on the yuan, which increases the outflow of capital abroad. In this regard, the Chinese authorities may use the weak yuan as a tool to support exports.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.