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Chinese data shows a clear improvement - SocGen

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, notes that the Chinese data do show a clear improvement, even if it’s just for one month.

    Key Quotes

    “In CNY terms, imports fell by only 4% y/y in December, vs 7.9% expected and exports rose 2.3%. The USD numbers are -7.6% and -1.4%. the import prices are a lot stronger than they look bearing in mind sharply falling import prices, though there’s less of an excuse for the underlying export weakness.

    I can’t help wondering however, if the positive response to a bounce in CNY denominated export growth that is a reward for the Yuan depreciation strategy, won’t just encourage more of the same. If a weaker currency pays dividends for China, as it did for others, then chances are, we’ll see more competitive devaluation in the months ahead across Asia.”
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