China/US Relations Not Impacting Forex Quotes

The relationship between China and the United States has always been a bit lackluster, but in recent days China took a significant step forward.  After selling arms to the Taiwanese the United States expected some form of aggression from China, and instead the nation did nothing.  This is as much a form of acceptance from the world wide giant as anything else we have ever seen.  Such relations will surely bolster the US dollar on Forex quotes, and enable further growth on the online forex exchange.  When maneuvering through fundamental information, anything pertaining to the United States with regard to its overall GDP is a very important indicator, and considering the country’s close ties China this is an event we should all take into account.  Traditionally China has been extremely aggressive where any aid to Taiwan is concerned, and by more or less accepting US aid to this country they have opened up the door to further diplomatic improvements.

There needs to be a balance between the bravado and world-policing nature of the United States, and the more isolated concept of Chinese politics.  The fact that the two countries are so dependent on one another does indeed attest to the diverse nature not only of the market, but of humanity as well.  The United States has single-handedly fueled their own largest competitor on the world’s stage in terms of economic and political power, and it has done so in a time of local crisis.  Such a decision has not been by many investors who see the very real causal link between China and the United States. 

Keeping these factors in mind when trading the US Dollar would be advisable since it is quite volatile these days.  Taking the time to consider where this relationship is at on a daily basis would be a sound practice, and would alert traders as to where the economy is headed in both countries.  Trading the Xuan is not as popular as many had believed it would have become, still it is a worthwhile pair to consider (USD/XIU), so long as you are willing to go the distance.  Using diplomatic information where China is concerned to trade the major currency pairs is my best advice in this situation.  If the United States is experiencing trouble it will almost certainly drop against other major currencies such as the Euro, and this will provide an excellent opportunity for those who are ready for it.

The author is a Forex trader and financial analyst residing in Denver, Colorado.  To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest forex quotes.

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