Clem Chambers – CEO of ADVFN.com – gives his thoughts on the FX market, why China’s currency move makes perfect sense, and are the markets overdue a catalyst?
Devaluation of Yuan is “No big dealâ€
With the dollar climbing 10% in the same period, Clem Chambers believes the 3% devaluation of the Yuan makes perfect sense. Market pressures could see the currency face further cuts as the first cracks begin to appear in the peg holding it up against the USD.
Sterling on the rise?
The GBPUSD is generating more interest this week, as the price enters a very narrow band that Chambers speculates could mean an imminent break that could go a long way. The belief is that it will rise, but Chambers recommends erring on the side of caution until a clean break is established.
Markets awaiting catalyst for a big correction
With few interesting actions in the market, as the S&P 500 and the FTSE 100 remain almost neutral over the course of the year, a correction could be on the horizon. With nothing pushing prices up, and the central banks offering small support from below, it’s anyone’s guess when something will happen to trigger any major change.
