The US dollar has to weaken further. Full stop. Key to this development will be policy decisions regarding the yuan and yen.
Experts seem to agree Asian markets may be best treated with caution in the short term, while longer term the growth story remains intact.
A rising trade surplus heeps more pressure on Chinese policymakers, with a soft landing looking less likely by the minute.
Quarterly growth figures in Japan are expected to come out weaker, but pressure on interest rates is not expected to subside.
Nobel laureate Robert Mundell doesn’t think a significant appreciation of the renminbi is the way to go.
The World Bank believes China is moving along just nicely. With a few more policy adjustments in place investors shouldn’t need to worry.
RGE Monitor believes the US will hold off a bit longer to brand China a currency manipulator. There are too many common interests at stake.
Pros and cons of further yen strength against the US dollar.
Regulatory changes are expected to boost M&A activity in Japan from May 2007 onwards.
DBS questions the rationale behind China’s surprise interest rate hike.