You can tell things are expected to be quiet – Happy Thanksgiving by the way to my American friends – when this column turns to those great philosophers Ozzy Osborne and Clint Eastwood for inspiration, let alone – and this is not for the first time – going all “Oliver Stone” on you. Either way, I suspect December is going to be a very interesting month, to finish off a quite extraordinary year in terms of peoples’ ability to get things wrong.
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.
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?