Can China shore up growth?

As the world's second-largest economy is slowing down because of its collision with the US on trade, the most important question for Invesco's Noelle Corum is whether China's stimulus measures, including the People's Bank of China, are enough to turn things.

"The key issue, at least for credit markets and risky assets, is whether Chinese growth and PBOC's actions are effective enough," Corum said. "Three of the big questions are related to growth, trade and the Fed, of course, but everything ultimately depends on growth because of China's efficiency."

While trade disputes continue - Trade Minister Wilbur Ross said the decision is "very far away" - China's economic indicators have alarmed the whole world, as the weak performance of the country will also negatively affect emerging economies.

Corum predicts that China's attempts will succeed by supporting Europe and emerging markets. With that in mind, it expects the US markets to consolidate and is the "tactical shortcut" of the dollar.

"They have shown us that they are fully prepared to respond appropriately to global issues as things get worse," she said. "And while we do not think there will be a major recovery in China, I think it will stabilize, which is enough for the moment."

It expects the euro to rise to $ 1.20 by the end of the year, from about $ 1.1370 currently.

Source: Bloomberg Finance L.P.

Original Post: Mysteries Pile Up in FX Market, From Fed's Path to China Growth

Chart: Used with permission form Bloomberg Finance L.P.

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