China gains respect while the Pound remains in the Doldrums
Sluggish Days for the Pound?
The British pound has seen modest gains over the past few trading sessions and is now slightly above the 1.51 figure in relation to the United States dollar. However, this is now without mixed results.
Recent bank stress tests pointed out that all but two institutions (Standard Chartered and RBS) have passed scrutiny and did not exhibit any symptoms of capital shortfalls. This was unfortunately offset by surprisingly sluggish PMI data.
Therefore, the robustness of the banking sector was muted thanks to PMI figures. One of the situations to watch will be whether or not the pound tests the 1.505 level against the dollar.
Should this occur, there may be another correction and levels of 1.496 are not out of the question. Online Forex trading circles will be watching this situation closely in the coming days.
China Scores with the IMF
It was recently announced that the Chinese Renminbi (CNY, Yuan) has been recognised as one of the elite currencies of the world by the International Monetary Fund. This should come as no great surprise considering that China is considered to be one of the most robust (and influential) countries on the planet.
Such a move has now opened up new possibilities for online Forex traders, as they may very well be looking to capitalise on initial market movements. Still, one of the stipulations to join this respected monetary group was that the Chinese government was forced to relinquish its rather tight control of the currency. This led to marked volatility in August and some Forex analysts are concerned that such instability could hamper a domestic economy that has already showed signs of slowing.
There is nonetheless real opportunity for experienced online Forex traders to make a substantial amount of profit; particularly in the binary trading arena.
