Oil versus Chinese Yuan aka. 'demand'. The Chinese Yuan didn't get the memo that global oil demand is going to increase in 2017...
This week, the World Bank released their annual outlook which would make fine ass wipe if your printer won't jam up on 4-ply. Compliments of yet-to-be-defined Trump-o-Nomics, the World Bank now predicts a significant increase in global GDP, assuming nothing bad happens, for example an impending trade war between the U.S. and China. They then went on to jump the shark by assuming an increase in commodity prices, while at the same time admitting that the U.S. is not the marginal consumer of commodities. They made no mention of the Trump-inspired global bond rout nor record EM capital outflow. In other words, they are predicting that something impossible will happen assuming that something that doesn't yet exist takes place first.
Unfortunately, even as World Bank EconoDunces are extrapolating Fantasy Island into the indefinite future by holding several million global variables constant, with a glib wave of their 'ceteris paribus' magic wand - a few well known risk factors are already going sideways. Such as the Chinese Yuan which came unhinged the same week as World Bank released their 4-ply report...
The central bank’s focus on managing the exchange rate and stemming capital outflows also reduces its leeway to adjust domestic borrowing costs to suit the domestic economy, a trade-off known as the “impossible trinity.”
World Bank: When you say 'impossible', what exactly do you mean by that?
Yuan versus all commodities:
