If markets need further evidence they should fade everything US president Trump say in public we got the semi-annual Treasury report. The most glaring omission was the US treasury against declined to label China a currency manipulator despite very public tough attitude. Most recently seen in current NAFTA negotiations. The Treasury actually soften its tone on China excluding the criticism present in April 2017 report. Although not country met the criterial of “currency manipulators” a few inched closer. In the Treasury report interventions as net purchased of foreign currency, totaling in excess of 2% of economy GDP over a 12-month period. Switzerland and Brazil reached these criteria for the four quarters ending June 17. Trade imbalances were also highlight with China, Germany, South Korea, Japan and Switzerland continue on the list of major trading partners that would be monitored.
By Yann Quelenn