Elapsing, Friday emerged to be less volatile day on the forex market. This is mostly caused by traders’ wait for forthcoming on Saturday, highly significant data releases from China. In view of Chinese economy information that came today, it is obvious that market is currently engrossed with mentioned Saturday’s China Consumer Price Index. Released today China Trade Balance emerged to be above expectations and regardless of decline in comparison with previous month is still at the impressive high (Actual 22.9 billion, forecast 21.2 billion, previous 27.2 billion). Current Trade Balance release is accounted for by both 34.9 percent increase in export and 37.7 percent increase in import. In the most likely scenario of significant upward surge of CPI, People’s Bank of China, facing problem of too high inflation, will hedge against it by increasing interest rates and thus will contribute in slacken of Chinese economy.
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