The US FED is confirmed being dovish now!
What has changed so far?
The "gradual increases" in US interest rates path has been removed and replaced with a "wait-and-see" approach. This may mean a rate hike or reduction in the future depending on the economic data.
The economic repercussion is a depreciating USD versus an appreciating RMB.
We hit the head of the nail when we took cognizant of an appreciating RMB recently and attributed it to the US FED previously. Our analysis has become more pronounced now with a further appreciation in RMB after the US FED statement.
https://sg-stock.blogspot.com/2019/01/reminbi-rmb-is-appreciating-abnormally.html
An appreciating RMB means that there is an influx of foreign capital and this will disrupt China's economic developments.
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