* “We assume a Biden win that reduces some trading uncertainty,” analysts at Swiss bank Lombard Odier wrote in a report on Tuesday.
* Under President Donald Trump’s administration, the U.S. and China have levied billions of dollars worth of tariffs on each other’s goods in a protracted trade dispute.
* Biden has slammed the trade war with China — saying that tariffs have hurt American businesses and consumers.
SINGAPORE — A win for Democratic presidential nominee Joe Biden in the U.S. election next month could prove to be bullish for the Chinese yuan, analysts said.
A “balanced outlook” for the election “should reduce the risk premium” for the Chinese currency, analysts at Swiss bank Lombard Odier wrote in a report on Tuesday.
“We assume a Biden win that reduces some trading uncertainty,” they said. “Biden’s presidency could lead to a more rational approach to bilateral trade — even if his team could prove as hawkish on China as Trump’s on other matters.”
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WNU Editor: Democrat Presidential candidate Biden has already made it clear that he wants to reset the US-China relationship to a time before Trump (i.e. massive trade surpluses for China). Couple this with promises from the Biden campaign that they support massive Congressional spending .... spending that would eventually depreciate the US dollar. I have to say yes. A Biden win would be bullish for China's currency.
3 comments:
Of course
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I should think any trading with china is a plus for the growing chinese military that is behind aggressiveness in Asia. A growing military that has caused a military buildup in response by country's on china's borders
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