Iris Pang, economist at ING, notes that the Chinese exports jumped 14.2% year-on-year in March after falling 20.8% YoY in February, mostly due to base effects.

Key Quotes

“Imports continued to shrink further, falling 7.6% from a 5.2% drop a month ago, partly due to lower imports from the US compared to a year ago.”

“To minimise the seasonal effect, we prefer to look at the first three months as a whole. Exports in 1Q grew 1.4% YoY while imports shrank 4.8% YoY. Trade with the EU was 15.8% of total trade while the US was 11.6%. If there is a trade deal between China and the US, Chinese imports from the US will likely increase. But for 1Q19, imports from the US fell 8.5%.”

“Early signs from China's official manufacturing PMI's export order showed an uptick in March to 47.1 from 45.2 in February, but the reading was still below 50, i.e. still shrinking, which suggests that exports will only improve slightly in the near future.”

“We don't think the yuan will help to support net exports if new export orders are falling. In fact, we don't think the yuan will be used this way in 2019.”

“Our forecast remains at 6.75 for the USDCNY by the end of 2019.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.

EUR/USD News

GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.

GBP/USD News

USD/JPY declines to 108.60 amid fresh risk aversion, all eyes on the ECB

With the recent uncertainty surrounding the UK’s politics crossing wires, USD/JPY steps back from the previous rise to 108.60 as Tokyo opens for Thursday’s trading session.

USD/JPY News

Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more

Forex MAJORS

Cryptocurrencies

Signatures