Back in the late nineties, pundits were already predicting that in the future, the world’s two superpowers will no longer be Russia and America, but China and the EU.
On the 25th of January, it was noted that China had overtaken Uncle Sam as the world’s leading nation for new foreign investment. Now statistics from Eurostat show another major step has happened to make that prediction come true.
How Did That Happen?
Besides the obvious reason for poor US relations over the last four years, China has been the only major global economy to see growth in 2020.
Leaving aside what conspiracy theorists might say about that particular fact, Eurostat says: “This result was due to an increase of imports (+5.6%) and exports (+2.2%)”. Largely due to the trade of electronics and medical equipment.
So who gives a Forex?
What does this mean for day traders? Well, for one, we can obviously expect some interesting action on USD/CYN in the weeks to come (as well as USD/EUR and EUR/CYN). And the increase in volatility is likely to be replicated over the next few years whenever Eurostat publish their findings.
US Biden It’s Time?
Of course, with the aforementioned ‘obvious reason’ no longer as big an issue as before (though one should note the dip USD suffered following the news of 13th Feb), the USA could be at the beginning of a long road to economic recovery.
Yet with mass power outages in the Lone Star state, a pandemic still spreading, and red tape complicating relief packages, the American economy is anywhere but stable.
Stocking Up On Meds
Meanwhile, away from the Forex markets, this is obviously a great time to be looking at emerging market ETFs.