From the Desk of Ian Culley @IanCulley
Most emerging market currencies have been in beast mode.
The Chinese yuan is a notable exception.
In fact, most Asian currencies haven’t fared well against the dollar over the trailing three months.
Latin American and Eastern European currencies – mainly the Brazilian real and the Mexican peso – are driving these markets.
Analyzing these currencies through the Emerging Currency Fund $CEW as it makes new 52-week highs is useful.
But I’m more interested in the Chinese yuan as it slips and slides against the dollar.
Why?
China represents the world’s second-largest economy.
And, based on the charts, the yuan could provide valuable insight into the direction of US stocks…