China Devalues Yuan, In Response To US $200bn Tariffs Plans – Asian Markets Rally


Chinese Yuan is on a collision course with the US Dollar. The simmering trade war between the United States and China has spilled over into a full-blown currency war. In a strategic move today, Chinese policymakers have aggressively devalued the Yuan past the 6.7 mark in its bid to tackle the $200bn tariffs imposed by the Trump administration.



A Tactical Move By China
Tensions had been rising in the recent past between two of the world’s largest economies even as they locked horns for a bigger chunk of the global business pie. According to the Amplify Forex Trading Strategy, today’s fixing of the Yuan is likely to play a primary role for the for Asian markets in the weeks ahead.



Asian Markets Rally
The Shanghai Composite has risen 2.18% in today’s trade from its previous close at 2778 and Japan’s Nikkei is up 1.12% since it closed at 21932 yesterday. India’s benchmark index Nifty opened gap up at 10981 this morning and went on to make a high of 11069. The Nifty has staged a remarkable rally of almost 500 points between 10591 and 11069 in the July expiry despite the trade tensions between the US and China. These events highlight the fact that trading derivatives are mostly about tactical strategies designed with the help of Logarithmic Analysis of Option Greeks.





Avoid The Pundits, Follow The Math
Most market pundits and research analysts had remained wary and predicted perilous negative impacts of the Trade Disputes on Nifty. Some had even sighted major selling, following the Open Interest data and quoting figures on the quantum of the US tariffs. These events prove yet again the hazards of trying to predict the market trend, rather than focusing on making money by remaining trend neutral in the market. Traders who followed the Amplify trading strategies booked profits at the highs and jumped into the market at every given opportunity. 

Take Advantage Of The Situation
It is very important thus for traders to keep a close eye on the major global currencies and trade wisely by designing tactful Options strategies that can take advantage of the massive pockets of opportunities created by those trading on the basis of the Open Interest data. At the onset, one must not forget that OI based traders are delayed by 24 hours and that in itself is a massive edge for those trading Options with greeks based strategies. The common belief “Trend is your friend” does not hold true of options, one would be wise to spend some time learning the Theta driven trading strategies and make money from the market while the pundits remain busy analyzing the US-China Tariff disputes.

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China Devalues Yuan
The gloves are off, the Chinese Yuan is on a collision course with the US Dollar. The simmering trade war between the United States and China has spilled over into a full-blown currency war. In a strategic move today, Chinese policymakers have aggressively devalued the Yuan past the 6.7 mark in its bid to tackle the $200bn tariffs imposed by the Trump administration.



A Tactical Move By China
Tensions had been rising in the recent past between two of the world’s largest economies even as they locked horns for a bigger chunk of the global business pie. According to the Amplify Forex Trading Strategy, today’s fixing of the Yuan is likely to play a primary role for the for Asian markets in the weeks ahead.



Asian Markets Rally
The Shanghai Composite has risen 2.18% in today’s trade from its previous close at 2778 and Japan’s Nikkei is up 1.12% since it closed at 21932 yesterday. India’s benchmark index Nifty opened gap up at 10981 this morning and went on to make a high of 11069. The Nifty has staged a remarkable rally of almost 500 points between 10591 and 11069 in the July expiry despite the trade tensions between the US and China. These events highlight the fact that trading derivatives are mostly about tactical strategies designed with the help of Logarithmic Analysis of Option Greeks.





Avoid The Pundits, Follow The Math
Most market pundits and research analysts had remained wary and predicted perilous negative impacts of the Trade Disputes on Nifty. Some had even sighted major selling, following the Open Interest data and quoting figures on the quantum of the US tariffs. These events prove yet again the hazards of trying to predict the market trend, rather than focusing on making money by remaining trend neutral in the market. Traders who followed the Amplify trading strategies booked profits at the highs and jumped into the market at every given opportunity. 

Take Advantage Of The Situation
It is very important thus for traders to keep a close eye on the major global currencies and trade wisely by designing tactful Options strategies that can take advantage of the massive pockets of opportunities created by those trading on the basis of the Open Interest data. At the onset, one must not forget that OI based traders are delayed by 24 hours and that in itself is a massive edge for those trading Options with greeks based strategies. The common belief “Trend is your friend” does not hold true of options, one would be wise to spend some time learning the Theta driven trading strategies and make money from the market while the pundits remain busy analyzing the US-China Tariff disputes.

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