By TraderVox.com
Trade data from China is especially important in the global economy since China is the largest exporter in the world. Analysts are now warning that there might be global economic slowdown later in the year if this trend continues. However, there are some analysts who are reluctant to place any significant weight on the trade data from Asia saying that the year-on-year growth for exports has been on the low since May 2010.
The Chinese trade data might augur the looming Euro area recession which is expected later in the year. Analysts have already warned that the recession might bring global economic growth to a halt, which will be one of a kind since the great recession. However, with the Greek debt crisis fairly resolved and the positive US jobs data released on Friday, some analysts have refused to accept the negative reports as signs of global economic slowdown.
The euro had dipped to its lowest of $1.3079 which is the lowest it had been since February 16. This coincided with the solid support at 55 day moving average for the euro. But some traders were wary of a close below 1.3080 which would prompt some hedge funds to augment short euro positions. The euro closed the Asia session at $1.3114. The strong showing of the dollar is as a result of safe haven appetite in the market after lower-than-expected Chinese trade data.
The yen increased against the dollar to close at 82.12 yen after rising to eleven month high of 82.65 yen 0n Friday. The strong yen and US dollar currencies have been viewed as signs for an increase in safe haven demand in the market.
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