This year’s meeting

Posted by Scriptaty | 1:11 AM

The G8 met in June of this year, and kept up pressure on developing Asian economies to adopt market-based exchange rates. But the meeting produced no clues as to when China will relax the peg of its renminbi currency tothe dollar. This topic is expected to be the center of huge debate at the meeting in July.

Traders have said, judging from the reduction in dollar/yen positions, that it appears the threat of Chinese revaluation still remains. This is especially true following China’s announcement of plans to attend the G8 Summit. Traders do not seem to be worried about a slide in the dollar before the July meeting (the dollar was up for the week as of June 30), but some say they are cautious about the days leading up to the summit. Edinburgh, Scotland, will likely shut down during the protests that routinely accompany G8 meetings, as a local business leader called on businesses to close amid security fears. Financial institutions such as the Royal Bank of Scotland and Standard Life are seen as likely targets of the anti-G8 demonstration.