The statement "foreign exchange is all about relative prices" in this The Economist's blog is so true. The current US growth projection is solid with consumer confidence recovering, in contrast to the ongoing recession in euro area (Need to check IMF WEO January Update). Japan is staggering and trying its best to weaken yen also.
I don't know if it goes to a new realignment but perhaps it is true that we need to put in a bit longer time horizon, back to the end of BW and forward to say 4-5 years in the future. Unless China moves to another currency regime, which could happen, this fragile status quo will likely continue.
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