Important- USD/CNH in the spotlight as trade war looms

If we look at global trade and all that the US president is attempting to achieve on trade we should note the yawning US trade deficit, which is now running in excess of $1 trillion on an annualised basis. Add that to the interest rate bill and you have a crushing rise in overall US debt. Please take a look at USDEBTCLOCK.ORG and you will see what I am talking about. Once you have done that, then turn to what is going on in Global trade. The latest revelations from DeepSeek are dealing a potentially crushing blow to the US AI industry. Then look at Chinese automakers and smart phones and you see a growing trend of cheaper priced quality products that are beating all the competition that surrounds them. Finally take a peak at the USD/CNH (offshore Yuan) and you might see that on a longer term valuation basis the currency is not far from record lows versus the dollar. If it rises above 7.40 it will reach its lowest ever level. The current record high for the dollar is 7.3749. So, if you think a trade war is now underway, a currency war will not be far behind it and that brings a potential Chinese response on the currency. Trump might kick off a trade war, but watch out for the Chinese authorities to kick off what might follow after that. The USD/CNH is right now at 7.3083