This is a guest post by Becky Ashley
China has consumed Japanese growth, stepping up to its rightful position on the throne of financial supremacy. Binary options can be used to trade on economic events and market direction. China’s increasing prevalence within the financial world, is elevating the impact of Chinese economic events.
Japan has surrendered the title of second biggest economy in the world to China.
Japanese success and forex allure to an extent became a self-fulfilling byproduct of its descent. The rising Yen, driven by investors seeking risk adverse FX pairs, fused with weakening consumer spending to contract Japanese fourth quarter economic results. The tiger’s prowl was in many ways already predetermined by the velocity of Chinese growth throughout 2010, tempering market surprise.
Communist seclusion and post war recovery cushioned Chinese growth, but not for long. China is expanding at a rapid rate, jumping the 2010 Japanese economic value of $5.474 trillion to a mammoth $5.8 trillion. If this current rate of growth is sustained, the next decade will see China usurp the US, to climb top of the economic tree.
The paws of this economic predator continue to reach into multiple facets of global movement, grappling with G20 leaders to gain control of communique economic indicators shaping future economic movements. The recent G20 meeting put forward an indicator based proposal designed as part of a progressive philosophy towards economic strength. China enforced its omnipotence on negotiations, with economic leaders obliged to agree to Chinese conciliations regarding economic proposals. Notably China succeeded in suppressing the use of key forex factors – exchange rates and currency as indicators of a countries economic decline.
Political clout aside, the pace of the Chinese economy on both a stock and corporate level not only pioneers but revolutionizes the face of modern finance. Oak Pacific Interactive, a Chinese facebook equivalent is one step ahead of the imminent facebook IPO. This major Chinese social networking company aims to raise approximately $500 million with an initial public offering in the US. While Chinese owned Huawei Technologies has aspirations to be the first to introduce telecommunications on the London tube network. Publicized as a gift from one Olympic nation to the next, the Chinese approach to the world’s forex markets is that of an over exuberant gift giver, supplying an overt level of demand the more gifts they give the greater the world’s dependency on China, fueling Chinese economic power and an insatiable appetite for growth. The forex markets will be watching closely as Chinese economic events generate market making activity and growth collides with inflation.
For more information on binary trading and the latest economic events visit IG Markets. The above information does not constitute as financial advice.