China is moving to loose the control of its currency and the market is getting excited. Personally, I believe the impact will be small and some positives and some negatives:
Positives:
1. reduce pressure on inflation in China and lesson the chance of interest rate moving up.
2. Some positive impact on commodity prices.
Negatives:
1. reduce profits for exporting companies in China
2. small increase in inflation pressure in U.S. due to higher Chinese products prices.
3. more questions on U.S Global reserve currency status.
I am cautious on the market
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