Thursday, July 21, 2005

China Revaluation

It was a bit of a crazy day on the markets with the Chinese revaluing their currency (Yuan). It used to be pegged to the US dollar, and now it's pegged to a basket of currencies, representing it's major trading partners.

However, the net result was only a 2% reduction in the currency compared to where it was.

Most of the worlds currencies traded over a large range - with some, including Australian Dollar & British Pound, finishing quite a bit higher.

I would guess that this might change over the coming months.

Looking at Gold, the market jumped a little bit, closing at $425. We'd need it to continue to rise to around $435-440 before it would be worth looking at trading.

Crude Oil continues to drop - but I'd expect this to reverse sometime soon. Basic logic suggests that the world is running out of oil, therefore the price will continue to rise.



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