China’s Mood is Lower After Brexit

China is less exposed to the impact of the referendum result than many other countries and yet the mood, when discussing Britain’s forthcoming departure from the European Union, is pretty gloomy.

Some Chinese may benefit in the short term. With the value of the pound dropping, tourists might find it cheaper to travel to Britain for a while, but the problem is that the general uncertainty about the post-Brexit global economy is also driving down the yuan.

What you can hear said, quite prominently, during the coffee chat here, is that the world is lurching from an internationalist outlook towards more of a closed, fearful perspective.

It seemed like we were all taking down barriers and the bleak scenario appears to be that the walls are going up again, they say.

Mind you, not everyone at the meeting is so pessimistic.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza