In the last post of International Issues TrendCalls Team wrote about Euro & problems in Euro Zone specially in PIIGS countries & after our writing the post, problems came out of the closet in the public vicinity & the Euro was dragged down badly. Along with Euro Gold was also dragged down in which relative buying was going on against the Dollar's weakness. But we still maintain Dollar's weakness will continue over a longer time frame & for now the phase of consolidation all over the World will take place or we can say in another words that excessiveness of the markets would get corrected.
China has bulged to the pressure of Yuan(Renminbi) & the appreciation is on with slow effects, In TrendCalls Team View the appreciation will gain momentum in coming days. But will the Yuan appreciation really help in cooling of inflation or it will create a death knell for exporters, what ever may be the result but surely it will help other exporting countries who were bogged down by Yuan policies.
Fed is on a rampage flooding markets with excessive supply of Dollars which in turn is creating artificial demand for all riskier asset class, will the upward trend continue depends upon how the real demand is created & how the manufacturers respond to adding capacities which in turn creates more jobs. In our view inflation is on & it will be the biggest monster of this decade if the authorities are not able to create sensible economic policies.
Views Given By TrendCalls Team
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