The opacity and frequent false alarms about Chinese growth have left traders jaded but the concerns are mounting. The commodity bloc suffered to start the week as those fears percolate while the pound led the way as the real money flows we wrote about yesterday return. But the main focus will remain on China with the manufacturing PMI due next. Our existing Premium trades include GBPNZD as sterling traders absorb the post-rederendum whipsaws in the British currency as the Labour party launches it's pre-election manifesto.
All areas of Chinese growth are suspect and last week's surprise liquidity injection left of us two minds. The willingness to act by China's central bank was proactive and crushed speculation they were going to sit on the sidelines. On the flipside, perhaps they wanted to stay on the sidelines but were forced to act based on the severity of circumstances.