The Chinese yuan to U.S. Dollar conversion ratio rose to 7.10 over the weekend. China continues to devalue their currency in order to make their exports cheaper which drives more business to their economy by price competition. Currency devaluation has been China’s main tool of defense against President Trump’s tariffs. However China did announce on Friday that they would be tariffing 75 billion dollars worth of US goods 5-10%. In response, Trump raised the tariff on 300 billion dollars of Chinese goods from 25% to 30%.
Personal income and consumer spending data comes out Friday morning. These numbers include changes in personal income, disposable income, and personal consumption expenditures. This will uncover nominal wage gains for the American consumer, a statistic that is closely monitored by the Fed.
Word of the week:
Capital Gain- Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.
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