The Future Outcome of the US-China Currency War

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In this episode Brett Stuart and Viewer K discuss the ongoing US-China trade negotiations and the team’s current remote viewing prediction of the USD/CNH over the next 90 days. The Trump administration needs a win after returning home empty handed after his negotiations in Vietnam with North Korean leader Kim Jong-Un. However, signals are not looking promising based on recent news that Chinese President Xi may not be joining Trump in Mar-a-Lago later this month. Viewer K  offers insight into the remote viewing signals for the currency pair and what he expects may occur over the next three months.

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Brett Stuart:    Welcome to The Signal Interrupt Podcast, where we discuss trends from across the Forex, futures, and crypto markets while providing a unique vantage point using predictive remote viewing strategies to reveal the markets of tomorrow today. I’m Brett Stuart, Founder of Technical Intuition and with me is my cohost, Viewer Kilo.

Viewer Kilo:   Ni hao, all.

Brett Stuart:    In this episode, we’ll be taking a quick look at the U.S. dollar versus the offshore yuan over the next 90 days to kinda see the direction that it’s been going based off a couple fundamental changes that might be occurring here with U.S.-China trade relations. So, if you’d like to kick it off, Viewer K. We’ll get this episode started.

Viewer Kilo:   Sure, thanks, Brett. You know, so one of my all time favorites to trade is a Litecoin onshore yuan, but given the fact that … Well, speaking a little more about that, Litecoin’s just been on a tear recently, almost doubling in price from the lows of what? Two, three months ago? So pretty incredible. But with all the talk of China-U.S. trade war, I thought maybe it would be a good time to look at and see if there’s any trends that are gonna emerge, if there’s a deal, or no deal. And so, U.S. Dollar offshore Yuan is the place to go.

Brett Stuart:    Yeah, and there’s definitely been quite a bit of back and forth over the past month between Trump administration and Chinese negotiators based on the tariffs that Trump put in not too terribly long ago. There’s a 10% tariff on Chinese goods right now on about $200 billion worth of goods and on another $50 billion of goods, there’s about 25% U.S. tariff. So it’s certainly not something that the Chinese government is in favor of and they want to have removed immediately. Now, one of the differences in opinions is how that would be done if an agreement was reached between the U.S. and China. Trump wants those slowly rolled back over time, once an agreement has been made, whereas China is like, “We want it all at once.” So, it’s certainly something to be looking at.

Viewer Kilo:   Indeed it is. So, the team did look at this and we’re focusing on a 90 day timeframe. Shorter than that, you just might not … You might miss a move, or well, there just might not be any moves to actually miss, so. Being safe, 90 days is where it’s at. So, all of the team basically is in agreement that there is a short overall trend for USD/CNH. So what that implies is that the offshore Yuan is actually gaining strength against the dollar, and that’s pretty much across the board. If I was going to take a wild, deeper stab at how the price action is going to unfold, I have the feeling that over the next 40 to 50 days, that we’re going to have a more pronounced short. And then thereafter, there’s gonna be a slight recovery. So maybe there’s a spike down towards the end of that 40 to 50 day window, and then a reversal. And that reversal, it doesn’t eat up all of the ground that was lost but it kinda will stagnate and will be pretty much untradable probably for the second half of the prediction period, which looks like we’re gonna end on June ninth, the way it is stretched out today. (editor’s note: scalping should be fine for the second 45-day interval)

Brett Stuart:    And yeah. And interesting thing about the short term is … I mean, just looking at through the lens of the news, one of the things that’s going on is supposedly, Trump is interested in closing a deal, at least tentatively, by the end of this month. But he’s supposed to meet with President Xi from China at Mar-a-Lago. But due to recent uncertainty, that’s been taken off, at least supposedly according to reports, President Xi’s calendar. will push back to next month, to April sometime. So, I mean obviously he doesn’t want to show up in Mar-a-Lago and then not have a deal, a deal worked out with Trump. But at the same time, Trump doesn’t want another loss, if you will, just coming back from Vietnam not too terribly long ago failing to actually negotiate a deal with North Korea. So for Trump it obviously wouldn’t be very good optics for him as well. So, if that’s getting pushed back, that might be indicative of some greater instability that we may not be privy to in the general public, what’s going on in those trade negotiations.

Viewer Kilo:   Well, taking a look at the data from a half full rather than a half empty standpoint. So the deterioration in the general short trend that I’m kind of noticing could be argued or presented as actually good news. I mean, one of the big sticking points that we’ve had with the currency in China is that they have a habit of devaluing everything to make their goods cheaper. And if this prediction is true, we’re seeing a continued strengthening of the offshore Yuan, which will thus make Chinese goods more expensive in the U.S. and conversely, U.S. goods less expensive there. So that could be interpreted as good news for the economy, deal or no deal.

Brett Stuart:    Right, well, even also just in the metrics of the comparison of exports to deficit is obviously in favor, as far as China’s concerned, a export. It’s surging around the world, as far as for exports, whereas the U.S. it’s kinda the inverse. It’s declining so.

Viewer Kilo:   Yeah, weaker dollar tends to mean better exports.

Brett Stuart:    Right.

Viewer Kilo:   So, maybe that’s narrowing.

Brett Stuart:    Well, I think that wraps up this prediction for U.S. dollar versus the offshore Yuan and it looks like short the dollar. There’s gonna be strength with CNH over the next 90 days. So we’ll definitely be looking at that, but just in this short term year, Viewer K, is there anything else that you’re keeping an eye on?

Viewer Kilo:   Fairly recently, there was a announcement by Samsung focused around the (Galaxy) S10 release, that they’re actually building their own wallet and they are adopting a few crypto-currencies. Obviously, Bitcoin’s gonna be in there and Ether’s gonna be in there, but there’s a few wild cards that haven’t been officially announced. I think one of the logos that showed up on the background of that presentation was Enjin, which has been spiking nicely. But I’m kind of holding out hope that maybe Tron is one of those that are added there. So I will be revisiting that in the near future.

Brett Stuart:    Yeah, I read about that wallet and it would definitely be interesting to see what those two mystery crypto-currencies are that end up on the Samsung app. So definitely something to watch for. So, in any case, that wraps up this episode and if you haven’t done so already, definitely head over to our website, signal-interrupt.com. You can sign up for our newsletter to stay updated on all new episode releases, as well as any changes that show up on our website. So definitely go do that, and that concludes this episode of the Signal Interrupt Podcast. We will see you guys on the next one. Take care.

Viewer Kilo:   Bye, everyone.

 

 

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