Comments made Sunday by US president-elect Donald Trump on Twitter have sparked fresh speculation as to whether his administration will label China a currency manipulator once he is in office.
China lodged a formal complaint to the US government after it emerged that Trump held a phone call with the President of Taiwan on Friday, in breach of decades of diplomatic protocol.
“I can tell you that the Chinese side has lodged solemn representations with the relevant party on the US side both in Beijing and Washington. China has got its message across to the world as a whole with regard to Taiwan-related issues. The US side, president-elect Trump's team included, is also fully aware of China's solemn attitude on the issue,” said the Chinese Foreign Ministry spokesperson, Lu Kang, in a press conference today.
It’s not often one can turn to Italian philosopher George Santayana to offer some direction for the foreign exchange market, but I feel on this occasion it is justified, because George nailed it.
There is so much noise at the moment around currency manipulation (of the “official” kind I hasten to add, not the “private” that has provided so much grief for the FX industry over the past four years) that anyone might think it's a relatively new phenomenon. It’s not.
How ironic is it, when the same US president that accuses just about everybody else of being a "currency manipulator", decides he wants to talk the dollar down? About as Ironic as the Swiss minister who this week claimed that Switzerland was not a currency manipulator - this in spite of the Swiss National Bank telling everyone it bought 66 yards of EUR/CHF in 2016. Perhaps it was short covering, I don't know. Either way, what happens in FX markets when everyone is trying to manipulate?
With a doff of the hat and the compliments of the season to those of you still chained to your desk this deep in December (and thus desperate enough for something to fill the day that you will read this), we come to the penultimate Irrational – and again, it’s quite competitive.
The Statement of the Year could be renamed the “Hmmm Award” because it is intended to highlight those things that people said that made your jaw drop and book an appointment at the Otolaryngologis.