Time to Short the Yuan
By: www.TheForexNittyGritty.com
China may be heading into an
economic crisis. Is it time to short
the Yuan against major Forex
currencies? If it is time t...
If the Chinese economy tanks
Australia will be hit as it exports a
lot of raw material to China. Japan
is a major trading ...
Will the Yen devalue further if the
Yuan falls? Is Canada and the CAD
safe? How about the US dollar if
the Chinese currenc...
Forex Factors and How they
Affect the Yuan
By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
Fundamental analysis of Forex
pairs requires good fundamental
analysis followed by up to the
minute technical analysis. Th...
Shorter term, technical analysis of
market sentiment hinges on
pronouncements and actions of
central banks and technical t...
While technical analysis can give
traders an advantage in short term
trading, the fundamentals are what
drive currency pri...
How to trade Forex successfully is
typically to use fundamental
analysis of Forex pairs to gain a
sense of the market poss...
Real Estate Bubble
By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
China is overbuilt. At lease on the
high end there are way too many
big projects that are sitting empty.
At the same time ...
Capital that went into mega
construction projects is not making
money and at some point foreign
investment will back off. ...
Debt Crisis
By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
Transparency has never been of
China’s strong points. Hidden debt
and unaccounted debt threaten to
bring down the Chinese ...
The situation is reminiscent of
Japan twenty years ago when the
Japanese economy was riding high
and Japanese investors we...
The situation is reminiscent of
Japan twenty years ago when the
Japanese economy was riding high
and Japanese investors we...
Slowing Exports
By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
The worst recession in three
quarters of a century has taken its
toll on China. Its biggest customer
is Europe and the EU ...
With exports down the rate of
growth in China is has fallen from
the ten percent per year level over
the last years to 7.5...
How to trade Forex successfully in
this case is to be aware of the
fundamentals that drive the Yuan
versus the Euro, USD, ...
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Time to Short the Yuan

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China may be heading into an economic crisis. Is it time to short the Yuan against major Forex currencies? If it is time to short the Yuan, which currency should one trade against? If the Chinese economy tanks Australia will be hit as it exports a lot of raw material to China. Japan is a major trading partner of China. Will the Yen devalue further if the Yuan falls? Is Canada and the CAD safe? How about the US dollar if the Chinese currency falls due to a debt crisis and falling exports or, even worse, a political crisis?

Forex Factors and How they Affect the Yuan

Fundamental analysis of Forex pairs requires good fundamental analysis followed by up to the minute technical analysis. The value of a currency depends on politics, monetary policy, balance of trade, currency reserves and economic stability. Shorter term, technical analysis of market sentiment hinges on pronouncements and actions of central banks and technical trading factors. While technical analysis can give traders an advantage in short term trading, the fundamentals are what drive currency prices over the long term. How to trade Forex successfully is typically to use fundamental analysis of Forex pairs to gain a sense of the market possibility and technical analysis to spot short term opportunity. With these caveats in mind, what drives the Yuan today?

Real Estate Bubble

China is overbuilt. At lease on the high end there are way too many big projects that are sitting empty. At the same time many smaller projects that could benefit the community are not happening. Capital that went into mega construction projects is not making money and at some point foreign investment will back off. If the real estate bubble in China collapses it may well bring the value of the Yuan down with it.

Debt Crisis

Transparency has never been of China’s strong points. Hidden debt and unaccounted debt threaten to bring down the Chinese economic system. The situation is reminiscent of Japan twenty years ago when the Japanese economy was riding high and Japanese investors were buying Rockefeller Center and the Pebble Beach golf course. Handshake loans that had been hidden from public view helped bring down the Japanese economy which proceeded to flat line for the next two decades. A debt crisis would be a good reason to short the Yuan.

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Time to Short the Yuan

  1. 1. Time to Short the Yuan By: www.TheForexNittyGritty.com
  2. 2. China may be heading into an economic crisis. Is it time to short the Yuan against major Forex currencies? If it is time to short the Yuan, which currency should one trade against? By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  3. 3. If the Chinese economy tanks Australia will be hit as it exports a lot of raw material to China. Japan is a major trading partner of China. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  4. 4. Will the Yen devalue further if the Yuan falls? Is Canada and the CAD safe? How about the US dollar if the Chinese currency falls due to a debt crisis and falling exports or, even worse, a political crisis? By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  5. 5. Forex Factors and How they Affect the Yuan By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  6. 6. Fundamental analysis of Forex pairs requires good fundamental analysis followed by up to the minute technical analysis. The value of a currency depends on politics, monetary policy, balance of trade, currency reserves and economic stability. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  7. 7. Shorter term, technical analysis of market sentiment hinges on pronouncements and actions of central banks and technical trading factors. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  8. 8. While technical analysis can give traders an advantage in short term trading, the fundamentals are what drive currency prices over the long term. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  9. 9. How to trade Forex successfully is typically to use fundamental analysis of Forex pairs to gain a sense of the market possibility and technical analysis to spot short term opportunity. With these caveats in mind, what drives the Yuan today? By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  10. 10. Real Estate Bubble By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  11. 11. China is overbuilt. At lease on the high end there are way too many big projects that are sitting empty. At the same time many smaller projects that could benefit the community are not happening. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  12. 12. Capital that went into mega construction projects is not making money and at some point foreign investment will back off. If the real estate bubble in China collapses it may well bring the value of the Yuan down with it. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  13. 13. Debt Crisis By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  14. 14. Transparency has never been of China’s strong points. Hidden debt and unaccounted debt threaten to bring down the Chinese economic system. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  15. 15. The situation is reminiscent of Japan twenty years ago when the Japanese economy was riding high and Japanese investors were buying Rockefeller Center and the Pebble Beach golf course. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  16. 16. The situation is reminiscent of Japan twenty years ago when the Japanese economy was riding high and Japanese investors were buying Rockefeller Center and the Pebble Beach golf course. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  17. 17. Slowing Exports By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  18. 18. The worst recession in three quarters of a century has taken its toll on China. Its biggest customer is Europe and the EU is ridden with recessions and flirting with loss of members on its southern flank. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  19. 19. With exports down the rate of growth in China is has fallen from the ten percent per year level over the last years to 7.5%. Economists are projecting that the next stop will be 5% a year and even lower. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan
  20. 20. How to trade Forex successfully in this case is to be aware of the fundamentals that drive the Yuan versus the Euro, USD, and other major currencies and trade accordingly. If you are going to short the Yuan do your own fundamental and technical analysis and do not rely on tips. By: http://www.theforexnittygritty.com/forex/time-to-short-the-yuan

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